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True or False:

You'll incur penalties if you contribute more than the maximum allowed to your IRA account

TRUE. If you've contributed more than your annual limit to either a Roth or traditional IRA, you must withdraw the excess by the date your tax return for the year is due (including extensions). Otherwise, you'll be subject to a 6% tax. The extra tax will follow you year after year until you pull the excess out.

Your IRA contribution limit depends on your age, marital status, income, type of IRA and whether or not you have a retirement plan at work. Figure out how much YOU can contribute every year with our easy-to-use IRA contribution calculator.

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