What happens if I overfund my non-deductable taditional IRA?
I have two separate accounts (one with Fidelity and one with a stand alone mutual fund company). Looking back on paperwork I see I selected the stand alone fund as an IRA. I funded this account with $2500. A couple months later I set up the Fidelity account, with an initial funding of $2500, then set up monthly transfers of $200 per month. So I have exceed my $5000 limit by $400 so far.
What are the implications of this? Will I have to take out extra money and pay taxes?