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Visitor I

Penalty on Roth contribution

My employer maintains a pension plan which mandatory contributes a percentage from my paycheck.  I also squirrel away $6000 per year to my Roth account.  Does anyone know why Turbotax calculates a penalty when my contribution towards my Roth is less than the $6500 limit?   No distributions or withdrawals.

4 Comments
Catalyst V

Penalty on Roth contribution

How old were you on Dec 31 of 2017? If you were under the age of 50, your ROTH contribution limit is $5,500, not $6,500.

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Visitor I

Penalty on Roth contribution

Thanks for the reply ; I am over the age of 50.  

Catalyst V

Penalty on Roth contribution

Well, you've probably done the obvious already and confirmed you entered the correct year for your birthday in the Personal Info section.  So lets see if it's because you earned to much income. See the chart at https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2017

 

Visitor I

Penalty on Roth contribution

Looks like that is it.  Thanks so much.  Looks like I can max contribute with this year's bump up on the AGI.