Turbo Tax says that I contributed too much in 2023 to my ROTH accounts. I have a workplace ROTH 401(k) as well as a regular ROTH IRA. I contributed a total of $6,800 in 2023 but TurboTax says I can only contribute $6,500. I thought I could contribute to both. I make less than $100k. What am I missing? Thanks!
Here are the contribution limits:
Amount of Roth IRA Contributions That You Can Make For 2023 | Internal Revenue Service (irs.gov)
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But a caution:
When entering your ROTH IRA contributions on the Deductions&Credits page in the software, you DO NOT include your ROTH 401k contributions there. That area is only for specifically- labelled IRA or Roth IRA contributions. Your Roth 401k contributions are entered ONLY in box 12 where you enter your W-2 form...nowhere else.
i.e. a Roth 401k is NOT a Roth IRA
A Roth 401(k) is not a Roth IRA. Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax. Under Deductions & Credits, enter only the amount that you contributed to a Roth IRA, not any amount contributed to the 401(k).
Thank you. Very helpful.
So I can clarify (maybe to help others in the future)...if you have a ROTH 401(k) you can contribute the maximum (based on age) and then also contribute the maximum of $6,500 (in my case of income and age) to a regular ROTH IRA. Does that sound correct?
Here are the contribution limits:
Amount of Roth IRA Contributions That You Can Make For 2023 | Internal Revenue Service (irs.gov)
______________________________
But a caution:
When entering your ROTH IRA contributions on the Deductions&Credits page in the software, you DO NOT include your ROTH 401k contributions there. That area is only for specifically- labelled IRA or Roth IRA contributions. Your Roth 401k contributions are entered ONLY in box 12 where you enter your W-2 form...nowhere else.
i.e. a Roth 401k is NOT a Roth IRA
A Roth 401(k) is not a Roth IRA. Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax. Under Deductions & Credits, enter only the amount that you contributed to a Roth IRA, not any amount contributed to the 401(k).
Thank you. Very helpful.
So I can clarify (maybe to help others in the future)...if you have a ROTH 401(k) you can contribute the maximum (based on age) and then also contribute the maximum of $6,500 (in my case of income and age) to a regular ROTH IRA. Does that sound correct?