Withdrawal of Excess IRA Contributions
An excess IRA contribution is the amount contributed to a traditional IRA during the year that is more than the smaller of:
The taxpayer may not know that a contribution is excess until the tax return is completed after the end of the year. When this situation is identified, the excess amount, and any earnings on that amount, need to be withdrawn by the due date of the return including extensions. If the excess amount is not withdrawn by the due date of the return, the taxpayer will be subject to an additional 6 percent tax on this amount.