topic How do I account for catch up contributions in Retirement tax questions

How do I account for catch up contributions

neeilbhatia — Sat, 21 Mar 2020 23:54:12 GMT

Re: How do I account for catch up contributions

MaryK4 — Sun, 22 Mar 2020 01:19:00 GMT

TurboTax will allow catch-up contributions based on entries- if you see something irregular, let us know.

Re: How do I account for catch up contributions

schnipper1 — Wed, 13 Apr 2022 14:43:34 GMT

I am 67. I have both a Roth and an IRA SEP account. My MAGI is ~110k. I entered $6500 for both accounts as a catch up contribution. I did check the Maximize Contribution to Individual 401k box. Without entering any additional contributions, I am getting a warning that I contributed too much to the Roth and I must withdraw $6000 by 4/18 or face an annual penalty and I do not understand why the catch up contribution is even being calculated as part of my annual contribution. It is my understanding that it should not be. Can you clarify this for me?

Re: How do I account for catch up contributions

MarilynG — Wed, 13 Apr 2022 21:29:48 GMT

If you are over 50, you can make a total Roth IRA contribution of $7,000. For your SEP IRA, there is no catch-up contribution amount, and your contribution is limited to 25% of your net earnings or $58,000.

IRA Contributions - Here are the highlights:

Annual contribution limit (2021): $6,000
Additional catch-up contributions for those age 50 and older (2021): $1,000
Income limits: Deductibility of contributions varies based on the type of IRA, filing status, and your (or your spouse’s) access to workplace retirement plans
Matching contributions: None

SEP IRA Contributions - Here are the highlights:

Annual contribution limit (2021): 25% of net earnings or $58,000, whichever is less
Additional catch-up contributions for those age 50 and older (2021): None
Income limits: Maximum compensation that can be considered is $290,000
Matching contributions: None. All contributions are made by the employer

Click this link for more info on Retirement Accounts.

@schnipper1