Roth IRA

Forum|Forum|1 year ago
December 29, 2024
1 reply
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In 2024 Premier Turbo Tax when I enter my 2024 Roth IRA amount my Federal Tax refund reduces. Not understanding why this is doing this as I am putting after tax money into my Roth IRA.

Best answer by VolvoGirl

Have you entered enough income yet to qualify to make a ROTH IRA contribution? It may be giving you an excess contribution penalty.

VolvoGirlAnswer

Employee

Have you entered enough income yet to qualify to make a ROTH IRA contribution? It may be giving you an excess contribution penalty.

dmertz

Employee

VolvoGirl is correct. If your refund goes down when you enter a Roth IRA contribution, some or all of the contribution is being treated as and excess contribution due either to having entered insufficient compensation or to your modified AGI for the purpose being too high with respect to your filing status.