Question regarding excess contribution to Roth

[donjen95]

In reviewing my 23 Turbo Tax file, I noticed that I received a message in the deductions and credits that says I had an Roth overcontribution of 3768.  At one point, I recall this amount being 1644, which is what I withdrew from the Roth and moved to my traditional in March of 24.  I am handing the resulting 1099-R on my 24 taxes.

My AGI for 23 was nowhere near close to the income limit as I am retired.  AGI for 23 was 51,947.  I contributed 7500 to the Roth.

Why would turbo tax have indicated that I had this overpayment? I know I should have researched this at the time, but here I am.

[DanaB27]

Without seeing the return and knowing all the details it is hard to tell why the excess contribution amount changed.

To clarify, did you have enough taxable compensations to make the Roth IRA contribution? If you did have enough earned income from wages or self-employment then your IRA contributions may be limited. 

To confirm you requested the withdrawal of excess Roth IRA contribution plus earnings and then made a new traditional IRA contribution for 2023? If yes, did you enter the traditional IRA contribution in the 2023 return? Or did you request a recharacterization? 

If you requested the withdrawal of excess Roth IRA contribution plus earnings then the earnings are taxable in the year you made the contribution. If you received a 2024 Form 1099-R with code PJ then this must be entered on your 2023 return. Also, make sure you indicated in the IRA contribution interview that you withdrew the excess contribution by the due date:

1. Click on "Search" on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “Roth IRA”
4. Enter the Roth IRA contribution
5. Continue until the penalty screen and enter the excess contribution amount withdrawn.