TurboTax Premier is stating I have exceeded the max income limits for contributing to my Roth IRAs. Our Married Joint W-2 income is $163K, but with my military pension, it is over the $189-199K max. I am being told by TurboTax that I have excess Roth IRA contributions and will be paying the 6% penalty for the $4200 (each) we contributed this year.
Your Roth IRA contribution might be limited based on your filing status and income, which includes the pension and W-2s. Please see 2018 - Amount of Roth IRA Contributions You Can Make for 2018 for details on the limit.
Excess contributions are taxed at 6% per year as long as the excess amounts remain in the IRA. The tax can’t be more than 6% of the combined value of all your IRAs as of the end of the tax year.
To avoid the excess contributions tax: