Jack is single, age 65 has made a contribution of $8200 to the traditional IRA account in 2014. How much will be the excise tax in 2014 if Jack withdraws $2200 from the IRA account by the due date?
- A 6% excise tax applies to excess IRA contributions that are not corrected by the applicable deadline.
- A 10% excise tax applies to distributions from an IRA, qualified plan or 403(b) account that occur before the participant reaches age 59.5. . . .