topic Roth IRA Contribution in Retirement tax questions

Roth IRA Contribution

denhillcro — Sat, 15 Feb 2025 15:52:38 GMT

I retired in 2023 but got a bonus check in 2024 which was reported on a W-2. I want to make a contribution to a Roth IRA of the amount received (the amount is below the max contribution limit), but Turbo Tax indicates I do not qualify for a Roth contribution. I am married filing jointly and income is below the $230,000 threshold. Why is Turbo Tax indicating I cannot make a Roth IRA contribution?

Re: Roth IRA Contribution

dmertz — Sun, 16 Feb 2025 15:21:23 GMT

The amount reported in box 1 of your W-2 minus any amount in box 11 is treated as compensation that will support an IRA contribution.

Re: Roth IRA Contribution

denhillcro — Sun, 16 Feb 2025 16:17:16 GMT

Thanks for responding.

The qualified amount on the W-2 that can be put into the Roth IRA is less than the max contribution limit for a Roth IRA. Income for married filing jointly is less than the income limitation. It looks like the criteria to contribute to a Roth IRA is met. What I can't figure out is why TurboTax says I do not qualify to make the contribution.

Re: Roth IRA Contribution

dmertz — Sun, 16 Feb 2025 17:11:02 GMT

Does TurboTax indicate that your compensation is zero?

The MAGI for eligibility to contribute to a Roth IRA depends on your filing status. Phase out range:

MFS: $0 to $10,000

MFJ: $230,000 to $240,000

Others: $146,000 to $161,000

You can examine TurboTax's Roth IRA Contribution Limit Worksheet to see how TurboTax is determining your contribution limit.