This article explains how to enter Roth IRA contributions for an individual return.
Calculations and limitations addressed in this article may be impacted by inflation adjustments for the year. To see the IRS annual inflation adjustments for tax year 2021 and 2022 see here.
To enter Roth IRA contributions:
- Go to the Deductions section and then select Adjustments to Income.
- Scroll down to the section Roth IRA.
- Enter the appropriate contribution amount in the field Roth IRA contributions (1=maximum).
- Enter "1" to calculate the maximum contribution.
- The program calculates and prints the Roth IRA Contribution Worksheet contained in the instructions for Form 8606.
- If the taxpayer or spouse made Roth IRA contributions and later recharacterized part of the contribution, enter in this field the total amount contributed, including the recharacterization.
- Enter the amount recharacterized in the field Recharacterizations.
- If an amount is entered in this field, scroll down to the Explanation of IRA Contributions Recharacterized section and enter the appropriate explanation.
- Enter the applicable amount in Contributions made (letter use only) to show the difference between the amount entered and the maximum allowable amount on the client letter. The difference is the amount to deposit or withdraw to avoid a penalty.
- If the return is on extension, the IRA paragraph doesn't print on the client letter. The program assumes the IRA was funded by the original due date of the return.
- The Form 8606 (Part III) section relates to lines 19 through 25 of Form 8606 Distributions From Roth IRAs.