Why cant I go back to the excessive Roth IRA withdrawal screen in TurboTax Desktop and Online?
Customers in TurboTax Desktop and Online who contribute too much money to a Roth IRA are warned that they have contributed too much and they could be penalized for the excessive contribution. TurboTax further alerts customers that they can avoid the penalty by cashing out the excess contribution from their Roth IRA on the "You Could Have a Penalty" screen before the due date of the return.
If customers enter the total excess amount of contribution to be withdrawn TurboTax will not allow customers to go back to the "You Could Have a Penalty" screen. However, if a customer enters a number that is not the entire amount in the screen they are allowed to go back to the screen as many times as they want.
If you are experiencing this issue you can verify or change your excess contribution withdrawal by following these steps.
For TurboTax Desktop:
- Click on Forms to enter Forms Mode
- Click on IRA Contrib Wks in the list of forms under "Forms in My Return"
- Scroll to the Recharacterized Roth IRA Contributions Smart Worksheets section
- Change the number in Line 26 (If you have an excessive contribution after changing this number you will be able to enter the "You Could Have a Penalty" screen in the Step-by-Step Mode)
For TurboTax Online:
- Click Revisit in the Traditional and Roth IRA Contributions section of Retirement and Investments
- In the Enter your Roth IRA Contributions screen enter your Roth IRA contribution so there is an excess (Ex. If you entered $7500 dollars enter $7501 to trigger the You Currently Have a Penalty screen)
- In the You Currently Have a Penalty Screen enter 0 for the excess contribution to be withdrawn
- Click Continue
- Click Continue to return to the Deductions and Credits section of TurboTax Online
- EXTREMELY IMPORTANT: Please remember to change your Roth IRA contribution BACK to what you actually contributed
- As long as you have an excess contribution in your Roth IRA you will be able to go back to the You Currently Have a Penalty screen.