I know that there will be a penalty of 6% if I exceed the my yearly allowance of traditional IRA, (which I think is $7000 for age 50 and under and $8000 for age of over $50 for year 2024). Wondering this 6% penalty is applicable for 2024 tax year or penalty would be yearly? If yearly for how long?
Also, would like to know if there is a way or retirement account type (e.g. Roth IRA or "Backdoor IRA") that I can exceed my yearly contribution allowance limit and not get penalized for over payment?
-Regards