Question
How do I explain to TurboTax that the money I used to start my Roth IRA was from years of saving and NOT from income generated over 2024 so that I can remove the penalty?
I made the max contribution of $7K from my years of saving to start my Roth IRA. I also started a business and barely made anything. So now TurboTax is telling me that I over paid into my Roth because you can't contribute more than you made. But the money didn't come from income of 2024, it came from past savings.
