Question
TurboTax still applies a $390 excess Roth IRA penalty on Form 5329, Line 25, even though my 2024 earned income absorbed the excess. How do I remove the penalty?
2023, I over-contributed $6,500 to my Roth IRA and paid the 6% penalty. In 2024, I earned $8,000 in self-employment income, which should have absorbed the excess. However, TurboTax is still showing a $390 penalty on Form 5329, Line 25, even though the excess should be resolved. I’ve deleted and re-entered my Roth IRA info multiple times, but TurboTax still isn’t recognizing my earned income as fixing the excess. How do I remove this incorrect penalty?
