TurboTax confused about 2024 Roth IRA contribution limits

Forum|Forum|1 year ago
November 14, 2024
3 replies
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I started preparing the 2024 return, and entered $8,000 Roth IRA contribution.

TurboTax told me that this is $500 too high, and alleged that the limit is $7,500 for people over 50.

However, the info window that opened after clicking "Learn More" says that this limit is $8,000.

Definitely a bug.

rjs

Employee

The preliminary releases of tax software for the new year are basically a rough draft. A lot of things have not yet been updated for the new year. There will be many software updates over the next few months. The contribution limits will be corrected in an update. The IRS will not begin accepting 2024 tax returns until sometime in mid to late January.

_Kris_Author

Yes, I am aware of the pending updates.

However, as a software professional for many years, I am rather alarmed by the fact that the contribution limit is apparently stored independently in (at least) two different locations.

In properly designed software, there should be just one place where such values are defined!

SteamTrain

Employee

Those of us who have used TTX for many years...we are well aware that anyone buying the 2024 TTX software this early? ...they will get what is essentially a beta version, and that many limits, like this one, will use the prior year's limits, and don't get reset until closer to January...or sometimes into January. But exactly which limits get updated to the proper values, and when they get reset to the 2024 values can occur during any one of the weekly software updates between now and January.

Software updates usually come out on Wed or Thurs evenings, so check for software updates each Friday morning.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

billtang

I got the same problem. I tried to enter $7000 to Roth IRA for someone less than 50 years old and it shows $500 excessive contribution. I am surprised that Turbo Tax is wrong on this basic function.

rjs

Employee

@billtang The preliminary releases of tax software for the new year are basically a rough draft. A lot of things have not yet been updated for the new year. There will be many software updates over the next few months. The contribution limits will be corrected in an update. The IRS will not begin accepting 2024 tax returns until sometime in mid to late January.

dmertz

Employee

Today's update corrected this.

Tjake

I entered a traditional IRA contribution of $5805, well under the $8000 limit. TT premier is treating my entire contribution as excess over the limit. Income is also way under the limit if $230,000 for married filing jointly. Anyone have an idea of what gives??

SteamTrain

Employee

@Tjake

If 'either" of you are covered by a retirement plan at work (includes 401k too), then double check the income limits on the IRS table...which are much lower that what you indicated:

2024 IRA contribution and deduction limits effect of modified AGI on deductible contributions if you are covered by a retirement plan at work | Internal Revenue Service

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*