Overcontribution
Any contribution to a tax-deductible retirement savings plan exceeding the maximum allowed contribution for a given period as determined by the retirement plan's registrar. Overcontributions are subject to the retirement plan's regulations or laws. Overcontributions are usually subject to some form of monetary penalty, intentioned to reduce their occurrences. Investopedia Says:
In the United States, overcontributions to Roth IRAs are subject to penalty if they are beyond a prescribed annual maximum overcontribution. The Government of Canada's RRSP program is known for the penalties imposed on RRSP overcontributions. Related Terms:
Notice of Assessment - NOA
Registered Retirement Savings Plan - RRSP
Registered Retirement Savings Plan Contribution - RRSP Contribution
Roth IRA
Self-Directed RRSP |