GeorgeM777
Expert Alumni

Retirement tax questions

One option, given the dollar amount of the excess, is to just pay the penalty.  The excess contribution penalty is equal to 6 percent of the excess amount.  The penalty for excess contributions continues every year that you don't correct the excess contribution.  In your case, it appears you will owe the 6 percent penalty on $200 for each year the excess remained in the account which appears to be two years.  

 

@colal

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