@Deb113 wrote:
So if I leave the excess in the account IRS says I have a 6% penalty until I remove it? There must be a way to do something with the money instead of paying this penalty for the next 20 years? Remove it somehow- or apply it to another year contribution?
There is no additional penalty if you over-contributed to a 401k, other than paying tax twice.**
There is a penalty if you over-contributed to an IRA.
A 401K is not an IRA, they are completely different. Which is it in this case?
(**Because a designated Roth 401k is normally not taxable if you withdraw after retirement, the consequences of an excess contribution are a bit odd, and I will need to ask for another expert to remind me. But first, let's clarify if this is an IRA or a 401k.)
