ROTH deposit

Forum|Forum|1 year ago
February 19, 2025
1 reply
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I'm retired and recently, I decided to take 5K from my savings and pop it into my ROTH. Now, my acct says "I need to have earned income to do that". I read about it later and he's right. What will happen now ? Will the IRS penalize me or should I take it out soon ? I put 5K in for 2024 in January 2025. Thx

ThomasM125

The IRS will penalize you for making the excess contribution unless you remove it. You should take the money out before the due date of your 2024 tax return. Remove the entry you made in TurboTax reporting the IRA contribution. You then report the earnings as follows on your 2024 tax return:

Go to the personal income section of TurboTax
Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
Choose Add Another 1099-R
Choose I'll type it in myself
On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R
Enter the distribution amount in box 1 of the substitute 1099-R
Enter the earnings in box 2a
Enter code "8" in box 7