Why I get “Excess Roth IRA Contributions” Message.

jb48888

In “Did you contribute to an IRA?” page:

Enter any traditional IRA contributions You made during 2023. $7500

Enter any Roth IRA contributions Shaolong made during 2023: $7500

By clicking ‘Save and Continue’ button twice, in “Did you withdraw any contributions?” page, I was warned: “Excess Roth IRA Contributions. Johndow has $7500 of excess Roth IRA contribution”.

If I go back to change the traditional IRA amount, the amount in above message will change accordingly although the message is clearly for “Roth IRA” contribution instead of traditional IRA.

My total income was about $130k. I thought I qualify to make contributions to both traditional IRA and Roth IRA in addition to my 401k contribution (Maxed out).

Please help with why I get “Excess Roth IRA Contributions” Message.

Thanks.

CoryF

Thank you for joining our community, jb48888.

There are some moving parts in your question. It appears that you are a Single taxpayer. It also appears that your age is greater than 50, adding the extra $1,000 to your contribution limit.

You are only able to contribute to one type of IRA in a year, on top of your maxed out 401(k) contributions. You will not be limited in the amount of Traditional or Roth IRA contributions by your income. However, the warning is coming because you are reporting contributions to both IRAs. You will need to choose which type of IRA that you want to contribute to for you to continue with your tax return without the Excess IRA contribution warning. For example, if you remove the Traditional IRA contributions, you will be able to proceed with the Roth IRA contributions. The flip side is also possible by removing the Roth IRA contributions and leaving the Traditional IRA amount.

The bottom-line advice is to remove one of the IRA contributions amounts to proceed without excess contributions warning.

jb48888

Hi CoryF,

Thank you so much for your reply.

I am over 50 and actually filing joint tax return. The total income is around $130k. My AGI is around $120k without making traditional IRA contribution. I thought I can at least make partial traditional IRA contribution since my MAGI should be less than $136,000 limits.

Am I missing something?

Thanks in advance.

MatthewD

Hi JB,

Make sure you review the IRS rule here for Roth IRA contributions. Keep in mind that the limit is based on your Modified AGI. This may be a good time to contact Support to review your account.

https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2023

jb48888

Hi MatthewD,

Thank you very much for your info and the link. I will do some research online first.

Regards,