Erroneous Roth IRA Excess Contributions

[tpzano]

When I input my Roth IRA contribution of $7K (I'm over 50), turbotax lists it as excess.  This has to be an error as my MFJ AGI is $116K.  There's no conversion or re-characterization involved.   Is this a known software glitch?

Thanks!

[tpzano]

In response to my own query, the answer is that, as a retiree, I have no earned income - basically, income from being paid by someone else.  Pensions, SS, dividends, cap gains, rental income etc doesn't count.

[DanaB27]

No, I cannot recreate this issue. Have you verified that your birthday is entered correctly? 

Yes, if your MAGI is under $204,000 then you should be able to make the full contribution. Please see Amount of Roth IRA Contributions That You Can Make for 2022 for additional details.

For 2022 the total contributions you make each year to all of your traditional IRAs  and Roth IRAs can't be more than:

• $6,000 ($7,000 if you're age 50 or older), or
• If less, your taxable compensation for the year

If you are still having issues then it would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.