§ 4973. Tax on excess contributions to certain tax-favored accounts and annuities
(a)
Tax imposed
In the case of—
(3)
an individual retirement annuity (within the meaning of section
408
(b)), a custodial account treated as an annuity contract under section
403
(b)(7)(A) (relating to custodial accounts for regulated investment company stock),
there is imposed for each taxable year a tax in an amount equal to 6 percent of the amount of the excess contributions to such individual’s accounts or annuities (determined as of the close of the taxable year). The amount of such tax for any taxable year shall not exceed 6 percent of the value of the account or annuity (determined as of the close of the taxable year). In the case of an endowment contract described in section
408
(b), the tax imposed by this section does not apply to any amount allocable to life, health, accident, or other insurance under such contract. The tax imposed by this subsection shall be paid by such individual.
(b)
Excess contributions
For purposes of this section, in the case of individual retirement accounts or individual retirement annuities, the term “excess contributions” means the sum of—
(1)
the excess (if any) of—
(2)
the amount determined under this subsection for the preceding taxable year reduced by the sum of—
(A)
the distributions out of the account for the taxable year which were included in the gross income of the payee under section
408
(d)(1),
(B)
the distributions out of the account for the taxable year to which section
408
(d)(5) applies, and
(C)
the excess (if any) of the maximum amount allowable as a deduction under section
219 for the taxable year over the amount contributed (determined without regard to section
219
(f)(6)) to the accounts or for the annuities (including the amount contributed to a Roth IRA) for the taxable year.
For purposes of this subsection, any contribution which is distributed from the individual retirement account or the individual retirement annuity in a distribution to which section
408
(d)(4) applies shall be treated as an amount not contributed. For purposes of paragraphs (1)(B) and (2)(C), the amount allowable as a deduction under section
219 shall be computed without regard to section
219
(g).
(c)
Section
403
(b) contracts
For purposes of this section, in the case of a custodial account referred to in subsection (a)(3), the term “excess contributions” means the sum of—
(1)
the excess (if any) of the amount contributed for the taxable year to such account (other than a rollover contribution described in section
403
(b)(8) or
408
(d)(3)(A)(iii)), over the lesser of the amount excludable from gross income under section
403
(b) or the amount permitted to be contributed under the limitations contained in section
415 (or under whichever such section is applicable, if only one is applicable), and
(2)
the amount determined under this subsection for the preceding taxable year, reduced by—
(A)
the excess (if any) of the lesser of (i) the amount excludable from gross income under section
403
(b) or (ii) the amount permitted to be contributed under the limitations contained in section
415 over the amount contributed to the account for the taxable year (or under whichever such section is applicable, if only one is applicable), and
(d)
Excess contributions to Archer MSAs
For purposes of this section, in the case of Archer MSAs (within the meaning of section
220
(d)), the term “excess contributions” means the sum of—
(1)
the aggregate amount contributed for the taxable year to the accounts (other than rollover contributions described in section
220
(f)(5)) which is neither excludable from gross income under section
106
(b) nor allowable as a deduction under section
220 for such year, and
(2)
the amount determined under this subsection for the preceding taxable year, reduced by the sum of—
(A)
the distributions out of the accounts which were included in gross income under section
220
(f)(2), and
(e)
Excess contributions to Coverdell education savings accounts
For purposes of this section—
(1)
In general
In the case of Coverdell education savings accounts maintained for the benefit of any one beneficiary, the term “excess contributions” means the sum of—
(A)
the amount by which the amount contributed for the taxable year to such accounts exceeds $2,000 (or, if less, the sum of the maximum amounts permitted to be contributed under section
530
(c) by the contributors to such accounts for such year); and
(f)
Excess contributions to Roth IRAs
For purposes of this section, in the case of contributions to a Roth IRA (within the meaning of section
408A
(b)), the term “excess contributions” means the sum of—
(1)
the excess (if any) of—
(2)
the amount determined under this subsection for the preceding taxable year, reduced by the sum of—
(g)
Excess contributions to health savings accounts
For purposes of this section, in the case of health savings accounts (within the meaning of section
223
(d)), the term “excess contributions” means the sum of—
(1)
the aggregate amount contributed for the taxable year to the accounts (other than a rollover contribution described in section
220
(f)(5) or
223
(f)(5)) which is neither excludable from gross income under section
106
(d) nor allowable as a deduction under section
223 for such year, and
(2)
the amount determined under this subsection for the preceding taxable year, reduced by the sum of—
(A)
the distributions out of the accounts which were included in gross income under section
223
(f)(2), and