Excess contribution

Definition:

The amount by which an IRA contribution exceeds the allowable limits. If an excess contribution is not properly corrected, a 6% IRS penalty applies.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Dedicated capital

Total par value (number of shares issued, multiplied by the par value of each share). Also called dedicated value.

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