topic Does turbo Tax calculate whether you are eligible to contribute to a Roth IRA? in Retirement tax questions

Does turbo Tax calculate whether you are eligible to contribute to a Roth IRA?

lindselltt — Fri, 26 Mar 2021 20:16:54 GMT

Re: Does turbo Tax calculate whether you are eligible to contribute to a Roth IRA?

MinhT1 — Fri, 26 Mar 2021 20:33:32 GMT

Yes, TurboTax will determine whether you are eligible to contribute to a Roth IRA from your MAGI.

The rules are listed in this IRS document.

Re: Does turbo Tax calculate whether you are eligible to contribute to a Roth IRA?

lindselltt — Fri, 26 Mar 2021 20:36:39 GMT

I see the rules at the IRS link, but is there a place in Turbo Tax software that notifies you that you are eligible? I haven't seen a message like this.

Re: Does turbo Tax calculate whether you are eligible to contribute to a Roth IRA?

ThomasM125 — Fri, 26 Mar 2021 20:49:57 GMT

In TurboTax, you need to enter your ROTH IRA contribution and when you get towards the end of that section, you will be informed of the maximum amount that you can make if your contribution is too large. Here is how you can enter your ROTH IRA contribution in TurboTax:

Deductions and credits
Retirement and Investments
Traditional and Roth IRA Contributions

Re: Does turbo Tax calculate whether you are eligible to contribute to a Roth IRA?

jp333 — Sun, 13 Apr 2025 16:32:36 GMT

This is not correct for 2024 taxes. if you enter an amount turbotax simply asks you if you overcontributed. It does not calculate what your contribution limit is. This is very frustrating because Turbotax has all your info. It seems like Turbotax should inform you AFTER preparing your taxes (but before actually fillinig) what your contribution limit is, and at that time allow you to contribute and adjust your taxes. At that point Turbotax has enough info to tell you what your contribution limit is and you can make the decision.

Re: Does turbo Tax calculate whether you are eligible to contribute to a Roth IRA?

MarilynG1 — Sun, 13 Apr 2025 17:01:20 GMT

Yes, TurboTax will tell you if you have an Excess Roth Contribution, as long as all your income info has already been entered. You're correct that people often change/add their Roth contribution based on this notification. A screen comes up towards the end of the IRA Contribution section, notifying you of the excess contribution and amount. You may not have continued through all the screens in that interview section.

@jp333