April 17, 2022 1:36 PM
last updated April 17, 2022 1:36 PM
I am limited by my small amount of earned income to less than the $7000 max contribution, however these funds I'd contribute to the Roth IRA are tax free anyway. Would there be some IRS penalty for the amount overfunded?
April 17, 2022 1:54 PM
Yes. 6% of the excess that repeats every year until the excess is removed.
You can only contribute earned taxable compensation .
**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.**