Excess Roth Contribution

[George18]

I made a Roth contribution in 2022. Because of end of year income, it turns out that my MAGI is approximately $190,000. Filing single, that is above the limit for Roth contributions. I have two questions about this.

1) When I fill out TT, it doesn't seem to recognize that the contribution is not allowed. What should I be looking for on TT?

2) What is my best way to fix the issue of the excess contribution. The return has not yet been submitted.

[AnnetteB6]

After you have entered all of your income, go to the IRA Contributions section of your return under Deductions and Credits.  Enter the information about the Roth IRA contribution that you made for 2022.  As you go through this section, you should see information at the end of the process telling you that you are not eligible to make a Roth IRA contribution.  You will also be given information about how to remedy the situation.  If you are not seeing this information, be sure that you have indicated that the contribution was to a Roth IRA instead of a Traditional IRA.

Take a look at the following TurboTax help article for some detailed information about what you can do to fix the issue of the excess contribution before the due date of your return:

What happens if I made an excess Roth IRA contribution because my modified adjusted gross income is ...

[George18]

When I do that, it get to the end of the section with "Your IRA Deduction Summary" and says my IRA deduction is $0. It does not say that the contribution is not allowed. One page asks "Do You Have any Excess Roth Contributions". That page's help screen references the $6000 maximum but does not mention ineligible contributions. It doesn't seem to change anything whether I answer no or say yes and include the contribution. Is there a specific form I can look at to see what's being calculated?

[DanaB27 · Accepted solution]

You can check the "Roth IRA Contribution Limit Worksheet" in TurboTax to see what was calculated.

Please see Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes for additional information.

To enter your Roth contribution:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution
6. Enter the Roth contribution amount 
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?/Switch from Roth to Traditional IRA?” screen

@George18 

[George18]

Thanks. The key to this was the IRS Worksheet 2-1. That was the first place I have seen that a Traditional to Roth conversion is not included in the MAGI calculation for Roth contributions.