topic Re: roth ira contribution in Retirement tax questions

roth ira contribution

mjazz — Wed, 11 Feb 2026 05:39:39 GMT

I'm 50+, still working, & according to IRS's formula, & my income bracket, I was told I could still contribute $7k max, n2 my roth. If I list that $7k, my '23 tax burden goes up. This would be cash that's already been taxed when earned that I want to add to my roth. Why would that happen?

Re: roth ira contribution

JohnB5677 — Wed, 20 Mar 2024 19:48:48 GMT

I will answer what I can, and then I'd like you to clarify a couple of questions.

You are correct on some issues.

Yes it was after tax dollars.
Yes in Tax Year 2023 - you can contribute $6,500 if you're under age 50 / $7,500 if you're age 50 or older.
You stated that your income was within the limits. This limit is not your income.
The calculation is done based on (M)oditied (A)djusted (G)ross (I)ncome MAGI.
Line 11 of your 1040 is your AGI. This number is adjusted to get MAGI.
MAGI is adjusted gross income (AGI) plus these,
- Untaxed foreign income,
- Non-taxable Social Security benefits, and
- Tax-exempt interest.
- MAGI doesn't include Supplemental Security Income (SSI).
Once you have determined MAGI you can see this IRS Roth Contribution Table to determine the maximum contribution.

Please clarify your question.

Unfortunately, we can't see your screen to see where you are, so I'll have to ask you a couple of questions.

Do you know what your taxable income (line 15 of the 1040 was before, and after posting the ROTH contribution?
Can you identify any other changes after you made the contribution?

You can preview your tax return by going to:

On the menu bar on the left that shows.
Select Tax Tools
On the drop-down select Tools
On the popup menu
Select View Tax Summary
On the left sidebar
Select Preview my 1040.
Schedules 1,2 & 3 are included if you scroll down past your 1040.
To return to the entry screens press Back on the sidebar.

Some key numbers on your 1040 tax return are:

Line 15 - Taxable Income

Line 24 - Total Tax.

Line 25 d - Withholdings.

Line 26 - Estimated tax payments

Line 33 - Payments including Credits.

Line 34 - Overpayments.

Line 37 - Tax owed.

Re: roth ira contribution

dmertz — Wed, 20 Mar 2024 20:40:18 GMT

@JohnB5677 , that is not the correct method for calculating MAGI for the purpose of a Roth IRA contribution. See Worksheet 2-1 in IRS Pub 590-A for the correct calculation which TurboTax does on the Roth IRA Contribution Limit Worksheet:

https://www.irs.gov/pub/irs-pdf/p590a.pdf

TurboTax increasing the taxes due when a Roth IRA contribution is entered implies either having insufficient compensation to support the contribution or MAGI for the purpose of a Roth IRA contribution exceeding the threshold for the particular filing status.