Series 6 - Investment Company And Variable Contracts Products Representative Exam
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Last year, John exceeded the IRA contribution limit by $5,000. How much must he pay as an excess contribution penalty?
$300
A
$750
B
$1,000
C
$2,500
D
Explanations
The excess contribution penalty for IRAs is 6% of the amount over the allowable portion. 6% of $5,000 is $300.