Whether you overfund on purpose or in error, the 6% annual penalty applies. As you grow the account the 6% means a larger and larger penalty each year. You'd have to be some darn good investor to overcome that penalty.
But as you imply, let's say you can make 100% a year trading, consistently. Heck, fund the IRAs to the hilt and go for it! The 39+% annual tax deferral would leave you with much more $$$ in the IRA to trade with!!
No one will allow you to put more than the limit in any one IRA, but you could, I suppose, open Keogh plans or SEP plans, fund for $30,000 each, close and transfer to a rollover IRA and trade like crazy!!
Check with an IRA/retirement plan specialist before trying this on your own.
Good Luck.
Colin |
