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D
debbie-rimerman
February 2, 2025
Question

Should I ignore being over by $9.00 in Retirement contribution?

  • February 2, 2025
  • 1 reply
  • 0 views
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    1 reply

    S
    SabrinaD2
    February 2, 2025

    It's important not to ignore any over-contribution to your retirement account, even if it's a small amount like $9.00. Over-contributing can lead to tax penalties if not corrected. 

     

    Inform your plan administrator about the over-contribution. They can guide you on how to correct it. You may need to withdraw the excess contribution and any earnings on it before the tax filing deadline to avoid penalties. 

     

    Ignoring the over-contribution can result in a 6% excise tax on the excess amount for each year it remains in the account.

     

    For more detailed information, you can click here.

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