I got an error saying I put too much money in my retirement account.
I did not.
Why did I get this message?
Also got it last year, if I remember correctly.
Don't think it had any effect on my taxes, but I should not be getting this message.
Thank you.
Answers
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Great question!
There are a few reasons why you may be getting this error.
For 2023, the total contributions you make each year to all of your traditional IRAs and Roth IRAs cannot be more than $6500 (or $7500 if you are 50 or older). Additionally, if your taxable compensation is less than those limits, then you cannot contribute more than your taxable compensation.
Your contribution may also be limited based on your filing status and income. For example, if your filing status was married filing separately and your modified AGI is greater to or equal to $10,000 your contribution limit is $0.
For another example, if your filing status is married filing jointly or a qualifying widower and your modified AGI was over $228,000 you would also have a contribution limit of $0.
If you would like to see the IRS table showing all of the contribution limits for 2023, the link is below. If you still are confused as to why you are getting the error, please sign in to your account and contact customer support. Our agents will be happy to review your individual return and see if we can help.
I am also including the link below discussing 401(k) limits, in case that is the retirement account you were referring to.
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I am aware of the limits and didn't exceed them. That is why I asked.
Thank you for responding so quickly, though.
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Joshua88,
Thank you for replying! We do stand by our software's calculation. Customer Support would be happy to review your return and provide the reason as to why your contributions were excess.
If you sign into your FreeTaxUSA account and select the support option at the top right, you can send a message directly to Customer Support.
We look forward to hearing from you!
