If the excess is not removed by the due date of your tax return (or extended due date if a timely extension was filed) then the amount of excess is subject to a 6% penalty that repeats every year until the excess is removed (or can be applied to a future years contribution that would not be an excess). In some cases of high earnings it pays to leave the excess in an pay the 6% penalty.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
