Thanks. This is clear and very well writtenNo, an additional tax of 6% would be assessed on the excess on Form 5329 which would be part of your 2024 1040 that you would file in 2025. Then, for 2025 you would file another 5329 (in 2026) that would absorb the excess by under contributing for 2025, so that no penalty was due for 2025 or future years.
Would you pay the penalty when filing the 2025 tax return?
This can be useful, because sometimes the 6% is less than the custodian's fee to remove the excess.
I also guess it would be important to leave the excess contribution not invested so there are no gains?
Statistics: Posted by jeam3131 — Thu Jan 02, 2025 3:01 pm — Replies 9 — Views 162
/english-betterindia/media/post_attachments/uploads/2023/03/farmer-1679903418.jpg)
.jpg)
