Question

excess contributions to Roth IRa

Forum|Forum|6 years ago
March 19, 2020
1 reply
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Turbo Tax said I have excess contributions to my IRA in 2019 and is charging $187 additional tax. There was a screen that asked "Enter Prior Year roth IRA Contribution" and I put -27,169 which is accurate since my contributions since inception (2006) and not including 2019 were $61,780.91 and deductions were $88,950.00 leaving $3,120.85 (since it excludes market fluctuation and income increases).

Contributed $6,480 for 2019. Called the IRS who says I shouldn't have any liability for addl tax contributions.

What is flagging Turbo Tax to say I contributed too much? Should I remove the money from the Roth IRA and move on? This has hung me up for hours now...... I'm concerned I can't contribute going forward because of this and need to understand it.

Thanks for any help you can give me.

D

DanaB27

Please be aware that Roth IRA contribution might be limited based on your filing status and income and therefore you might have an excess contribution. Please review: 2019 - Amount of Roth IRA Contributions You Can Make for 2019

Also, for 2019, your total contributions to all of your traditional and Roth IRAs cannot be more than:

$6,000 ($7,000 if you're age 50 or older), or
your taxable compensation for the year, if your compensation was less than this dollar limit.

Excess contributions are taxed at 6% per year as long as the excess amounts remain in the IRA.

To avoid the excess contributions tax:

withdraw the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
withdraw any income earned on the excess contribution.

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