How is the IRC Section 4973 excise tax on excess contributions to the Roth IRA calculated?
A.4 The excess contributions to the Roth IRA consist of the contribution portion (as determined above) of the total amount distributed, reduced by $3,000. The excise tax for 2003 is 6 percent of the excess contributions. There is no excise tax for 2004 or later years because all amounts (including the excess contributions) are treated as distributed on December 31, 2004.
