puravidapto
Level 7
12-31-2021
07:57 AM
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For the year with excess, there will be a 6% penalty. The following is from the IRS publication 969. I used an unofficial source as it is short and sweet and obviously correct to me.
Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the account.
You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.
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