How to Resolve Excess IRA Contributions

Do you have a problem with excess IRA contributions? If you made contributions to your IRA, Roth IRA or SEP plan that exceed the contribution limits allowed for you this year, you could be at risk of IRS penalties. You can easily correct this, however. If an excess contribution is made during the year, the excess contribution penalty will not apply if the excess contribution plus related earnings is withdrawn by the due date (including extensions) for filing the return.

If you do not withdraw the excess contribution by the due date of the tax return, you will be penalized at the rate of 6% for each year the excess contribution is allowed to remain in the IRA.