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Abhyasi writes:

<<Another max contribution detail I've yet to discover is: what's the penalty for contributing over the max 2K per year? Will it simply be rejected by your broker? Does it invalidate the entire IRA, or is the amount over 2K simply taxed differently?>>

The excess contribution is penalized at 6% per year in each and every year it remains in the account. Many brokers won't allow the excess contribution, but many don't care. If you have one of the latter, it's conceivable you could leave the money in there at 10%, pay your 6%, and net 4% within the account. Remove it, though, and the same money would net you even more after taxes earning the same 10%.

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