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Client already made a Roth of 6k for 2019. I put in 7k for Traditional and software is letting me deduct it! I am fairly sure the IRS site is updated and you can only deduct a TOTAL of 6k (unless 50 or o)ver, then it is 7k
Right?
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Just curious, is it generating a 5329 showing the 6% penalty in Parts III or IV?
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"I am fairly sure the IRS site is updated and you can only deduct a TOTAL of 6k (unless 50 or o)ver, then it is 7k"
A ROTH isnt deducted.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Thanks Lisa...I know the Roth is not deductible..I am just curious why it lets me deduct the Traditional one if a Roth has already been input! I would think there would be an error or something LOL!
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Like Rick asked above, is any penalty flowing to the 5329 for over contributing to the ROTH?
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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HAHA...I just came back on to say that it WAS calculating a penalty, so I guess that is my warning! LOL...thanks everyone! It lets you deduct the traditional and gives a penalty for excess.
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Great, thanks for reporting back. TP can take a corrective distribution before 4/15/20 and avoid the penalty. Or if at least one of the contributions was made in 2020 and designated 2019, you can have the IRA custodian change the year designation to 2020.
Rick