🎯 How much would you save by correcting an IRA overcontribution?

Finn

This calculator is a straightforward tool for estimating the cost of ignoring an IRA overcontribution. It clearly breaks down your allowed limit, the excess amount, and the recurring 6% penalty you'll face each year it goes uncorrected. Keep in mind that the 6% penalty is technically capped at 6% of your total IRA balance, so if your account took a massive dive, your actual penalty might be slightly lower. You'll also want to verify the contribution limits for your specific tax year before making any moves, as the built-in limits might not match current IRS rules. Still, it's a helpful reminder to clean up those excess contributions before the IRS comes sniffing around.

Reviewed v26.8.0