Overcontribution

AAA

DEFINITION of '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 EXPLAINS 'Overcontribution'

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
  1. Roth IRA

    An individual retirement plan that bears many similarities to ...
  2. Registered Retirement Savings Plan ...

    A legal trust registered with the Canada Revenue Agency and used ...
  3. Self-Directed RRSP

    A type of RRSP (Registered Retirement Savings Plan) whose owner ...
  4. Registered Retirement Savings Plan ...

    Assets invested in an RRSP. RRSP contributions can be made at ...
  5. Notice Of Assessment - NOA

    An annual statement sent by revenue authorities to taxpayers ...
  6. Retirement Readiness

    The state and/or degree of being ready for retirement. Retirement ...
Related Articles
  1. I just learned that my 2004 and 2005 ...
    Retirement

    I just learned that my 2004 and 2005 ...

  2. Retirement Planning Basics
    Options & Futures

    Retirement Planning Basics

  3. Registered Retirement Savings Plans ...
    Taxes

    Registered Retirement Savings Plans ...

  4. When Your Job Offers An Awful Retirement ...
    Retirement

    When Your Job Offers An Awful Retirement ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center