Note:
Internal Revenue Manual Part 4. Examining Process · 2026-10-03 edition · updated 2026-10-04 · United States
Individuals are entitled to make the "traditional IRA contribution" for that year. See Pub 590-A.
Contributions made on behalf of each participant in excess of the "traditional IRA contribution" limit are excess contributions subject to IRC 4973 excise tax.
IRC 72(t) tax applies to excess amounts distributed from the IRA-based plan to the extent that the participants didn’t previously take amounts distributed into income.
The plan sponsor is liable for IRC 4979 excise tax when the SARSEP fails the discrimination test in IRC 408(k)(6)(A)(iii) and doesn’t timely correct.
Get a plain-English answer with a citation back to this text.
Ask AI about this code