topic Earned Income in Retirement tax questions

Earned Income

mj-askformarcusj — Wed, 11 Feb 2026 05:34:53 GMT

Can a tax refund be directly deposited into a Roth IRA account?

Re: Earned Income

dmertz — Fri, 22 Mar 2024 00:31:10 GMT

A tax refund is just cash. You can do anything with it that you can do with cash.

Re: Earned Income

SusanY1 — Fri, 22 Mar 2024 03:00:27 GMT

If the Roth custodian can provide a routing and account number that work with the Automated Clearning House (ACH) then, yes, a tax refund can be directly deposited to the account.

Re: Earned Income

dmertz — Fri, 22 Mar 2024 11:55:04 GMT

Be aware that doing a direct deposit to an IRA will be credited as a current-year contribution, not a prior-year contribution. Also, there could be problems if there is a long delay in generating the refund such that it doesn't happen until the following year and there could be problems if the IRS makes changes to your tax return that results in an excess contribution to the IRA. These problems are manageable, but is the convenience worth the potential complications?

Re: Earned Income

mj-askformarcusj — Sat, 23 Mar 2024 21:08:10 GMT

Thank you for your response. I agree. My concern was this functionality was not available with Turbo Tax Home and Business 2024. Attempts to do so failed and the explanation, was it could not be done.

Perhaps, I overlooked something.

Re: Earned Income

mj-askformarcusj — Sat, 23 Mar 2024 21:10:13 GMT

Perhaps, I overlooked something.