# Have you ever been audited for over-contributions to your IRA?



## _Tron_ (Feb 9, 2020)

There are limits how much money can be placed in an IRA each year. If you go over the amount the IRS charges 6% per year on the overage. Every custodian sends a form to the IRS each year stating the customer's contribution amounts.

So the IRS theoretically knows if a taxpayer over-contributes. My question is, has anyone ever been popped for this?


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## UberTaxPro (Oct 3, 2014)

_Tron_ said:


> There are limits how much money can be placed in an IRA each year. If you go over the amount the IRS charges 6% per year on the overage. Every custodian sends a form to the IRS each year stating the customer's contribution amounts.
> 
> So the IRS theoretically knows if a taxpayer over-contributes. My question is, has anyone ever been popped for this?


yes it happens and penalties continue until the issue is resolved by removing the $ overage.


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