If I pay the 6% penalty on my excess contribution to my IRAs this year and decrease my contributions so they are less than 7k next year, will I be in the clear?

jleichtnam — Tue, 17 Feb 2026 20:11:15 GMT

My penalty is only $23 this year so it would be easier to just take the hit and correct the situation for next year, but I want to make sure I won't have the same issue next year again.

Re: If I pay the 6% penalty on my excess contribution to my IRAs this year and decrease my contributions so they are less than 7k next year, will I be in the clear?

Opus 17 — Tue, 17 Feb 2026 20:30:19 GMT

Correct. If you have a penalty of $23 this year, that would mean you over-contributed by $383. If you leave the excess in the account and contribute less in 2026, that will use up the excess. Note that you must be $383 less than whatever your 2026 limit will be. IRA contributions are capped at $7000, or $8000 if over 55, but your ability to make a Roth contribution, or a deductible contribution to a traditional IRA, might be less than the maximum due to your income and other situations.

topic If I pay the 6% penalty on my excess contribution to my IRAs this year and decrease my contributions so they are less than 7k next year, will I be in the clear? in Retirement tax questions

If I pay the 6% penalty on my excess contribution to my IRAs this year and decrease my contributions so they are less than 7k next year, will I be in the clear?

Re: If I pay the 6% penalty on my excess contribution to my IRAs this year and decrease my contributions so they are less than 7k next year, will I be in the clear?