Subject:  Roth IRA Contribution
From:  Bryan
Date:  Fri, 14 Oct 2005

Hello Gray,

What happens if you contribute more to a Roth than the limitation amount?

Bryan

Answer

Date:  Mon, 07 Nov 2005

Hello Bryan,

A non-deductible 6% excise tax is imposed on excess contributions to a Roth for each year until the excess amount plus related earnings are distributed. (Internal Revenue Code Section 4973(a).)

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.