My MAGI (Line 11 on for 2021 tax year 1040) is 250K but 170K of which is a conversion from Traditional IRA to Roth IRA. So according to IRA publication https://www.irs.gov/publications/p590a#en_US_2019_publink[phone number removed], worksheet Modified Adjusted Gross Income for Roth IRA Purposes, the MAGI is only 80K for Roth IRA purpose, well under the 208K contribution limit for married file jointly. However, Turbo tax still calculated the penalty and said that this is excess contribution due to our MAGI is over 208K. Any one else experience this? Seems like a TurboTax error for the 2021 year.
You'll need to sign in or create an account to connect with an expert.
I could not reproduce this error. TurboTax correctly subtracted the Roth conversion from the AGI to determine MAGI and I was able to contribute to a Roth based on the MAGI.
Was the conversion reported to you on Form 1099-R as a withdrawal from your IRA? If so, make sure it is reported this way:
At that point, your ability to contribute to a Roth IRA should not take this income into consideration:
Followed the detailed instructions and this time worked! Thank you @RaifH
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
tocguy
Level 3
rpmm
Returning Member
eltonrsmith
Level 1
Dave Moss
New Member
jjyoo92
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.