The IRS's plain-English definition (Pub 590-A)
The current Pub 590-A defines excess contributions for Traditional IRAs as follows:
“Generally, an excess contribution is the amount contributed to your traditional IRAs for the year that is more than the smaller of: $7,000 ($8,000 if you are age 50 or older), or your taxable compensation for the year.”— IRS Pub 590-A (2025), “Excess Contributions” (read full publication)
Three definitions of excess — by account type
The trigger is different across account types. The matrix below shows what counts as excess in each one — and which is most likely to surprise a contributor who only watched the dollar cap.
| Account | What counts as excess | Statute | Common surprise |
|---|---|---|---|
| Traditional IRA | Total contributions across all your IRAs (combined) above the IRC §219(b) annual cap. Catch-up contributions add $1,000 if you're 50+. | IRC §219(b) | Spouse stopped working mid-year — combined cap reduced to actual taxable compensation; everything above that is excess. |
| Roth IRA — dollar cap | Total Roth contributions across all Roth IRAs above the IRC §408A(c)(2) annual cap (which mirrors §219(b)). | IRC §408A(c)(2) | IRA + Roth contributions are aggregated against the same cap — contributing $4,000 to each in a $7,000-cap year creates $1,000 of excess. |
| Roth IRA — MAGI phase-out | Any Roth contribution made while modified AGI is at or above the upper bracket is fully excess; while inside the bracket, the allowed amount is reduced (Pub 590-A Worksheet 2-2). | IRC §408A(c)(3) | "I contributed under $7,000, so I'm fine" — but year-end MAGI came in over the limit. Whole or partial contribution is excess. |
| HSA — annual cap | Contributions above the IRC §223(b) cap (self-only vs family + age-55 catch-up). | IRC §223(b) | Employer contribution + payroll contribution combined to exceed the cap; you weren't tracking the employer side. |
| HSA — monthly eligibility | Cap is pro-rated to the months you were HDHP-eligible. Losing eligibility mid-year (e.g., starting Medicare) shrinks the cap retroactively. | IRC §223(b)(8) (last-month rule) | Used the last-month-rule full-year cap, then failed the 13-month testing period — the over-contribution becomes excess. |
Tax-year inclusion difference (IRA vs HSA) — verbatim statute
This catches people out. IRA NIA is taxable in the year the contribution was made (per IRC §408(d)(4)):
“Any net income described in subparagraph (C) shall be included in the gross income of the individual for the taxable year in which such contribution was made.”— 26 U.S.C. §408(d)(4)
HSA NIA is taxable in the year it was received (per IRC §223(f)(3)):
“Any net income described in subparagraph (B) shall be included in the gross income of the individual for the taxable year in which it is received.”— 26 U.S.C. §223(f)(3)
Both flow through to Form 1040; they just sit on different years' returns.
Annual contribution limits
| Tax year | IRA / Roth | w/ catch-up (50+) | HSA self-only | HSA family | HSA catch-up (55+) |
|---|---|---|---|---|---|
| 2026 | $7,500 | $8,600 | $4,400 | $8,750 | $1,000 |
| 2025 | $7,000 | $8,000 | $4,300 | $8,550 | $1,000 |
| 2024 | $7,000 | $8,000 | $4,150 | $8,300 | $1,000 |
Limits per IRS Pub 590-A (IRA), Pub 969 (HSA), and IRS Rev. Proc. annual announcements. The 2026 IRA limit ($7,500 / $8,600 catch-up) is verified verbatim in Pub 590-A (2025) “What's New for 2026.”
Phase-out brackets — when MAGI makes a Roth contribution excess by definition
For Roth IRA contributions, exceeding the modified-AGI phase-out threshold reduces (and eventually eliminates) the dollar amount you're allowed to contribute, regardless of the IRA cap. A Roth contribution made while your MAGI is at or above the upper end of the bracket is fully excess— even if it's well under the annual limit. A contribution while MAGI is inside the phase-out range is partially excess — Pub 590-A Worksheet 2-2 computes the reduced limit.
| Tax year | Filing status | Phase-out begins (MAGI ≥) | Fully phased out (MAGI ≥) |
|---|---|---|---|
| 2026 | Single / Head of household | $153,000 | $168,000 |
| 2026 | Married filing jointly / Qualifying surviving spouse | $242,000 | $252,000 |
| 2026 | Married filing separately (lived with spouse during the year) | $0 | $10,000 |
| 2025 | Single / Head of household | $150,000 | $165,000 |
| 2025 | Married filing jointly / Qualifying surviving spouse | $236,000 | $246,000 |
| 2025 | Married filing separately (lived with spouse during the year) | $0 | $10,000 |
Source: IRS Pub 590-A (2025 edition, "What's New for 2025/2026" and "Amount of Roth IRA Contributions That You Can Make") . 2026 brackets verified verbatim in the publication's “What's New for 2026” section. Last verified 2026-05-04.
Married filing separately who did notlive with the spouse at any time during the year uses the Single / Head-of-household bracket. Traditional IRA deductibility has a separate (and lower) phase-out when the contributor or spouse is covered by a workplace retirement plan — see Pub 590-A "Are You Covered by an Employer's Retirement Plan?" tables; Traditional contributions themselves are not capped by MAGI, only the deduction is.
Worked example: HSA monthly-eligibility excess
You enrolled in Medicare starting August 1, 2025. Through July 31 you were HDHP-eligible on family coverage. Pub 969 confirms HSA eligibility ends the first month of Medicare enrollment — the §223(b) cap is calculated on a monthly basis and pro-rated to the months you were eligible (subject to the last-month rule under §223(b)(8)). For 2025, the family-coverage cap is $8,550, so the pro-rated cap for 7 of 12 months is $8,550 × 7/12 = $4,987.50. If you contributed the full $8,550 (e.g., via an early-year lump-sum payroll), the excess is $8,550 − $4,987.50 = $3,562.50.
You can correct this by withdrawing the $3,562.50 plus net income attributable per §223(f)(3) before the return due date, or rely on the last-month rule (§223(b)(8)) if you were HDHP-eligible on the last day of 2025 — but that only applies if you remain HDHP-eligible through the 13-month testing period (Dec 1, 2025 through Dec 31, 2026). Starting Medicare in August 2025 disqualifies you from the last-month rule. See Pub 969 “Last-Month Rule” and “Testing Period” for the conditions.
Common excess scenarios
- Contributed to both Traditional and Roth in the same year, exceeding the combined cap.
- Contributed Roth then realized year-end MAGI exceeded the phase-out.
- Spouse stopped working mid-year — spousal IRA cap reduced.
- HSA contribution while not HDHP-covered for the full year (last-month rule failure on testing-period end).
- Employer HSA contribution + payroll contribution combined to exceed the cap.
- Backdoor Roth conversion misclassified as a contribution by custodian.
Also relevant
- The NIA formula, line by line — once you know there's excess, this is how the earnings figure is computed.
- When to file the corrective return — the §301.9100-2(b) automatic six-month extension and what it requires.
- Deadline matrix — every fact-pattern × correction-path with concrete dates.
- Custodian guides hub — per-custodian process notes (auto-NIA support, forms, quirks).
- Run the NIA calculator — client-side, balances never leave your browser.
Informational, not tax advice. Consult a CPA or Enrolled Agent before acting on a corrective distribution.