Meanwhile, if you earn over $200,000 as a single employee or over $250,000 as a married taxpayer, you are subject to an ADDITIONAL 0.9 percent Medicare tax with the Net Investment Income Tax (NIIT). In other words, the employee now must pay 2.35% of his/her earnings to Medicare beyon...
and earnings on the excess amount are taxable in the year the contribution was withdrawn. Excess contributions that are not withdrawn by April 15 of the following year also count as taxable income for the year they were made. In addition, these excess contributions are taxed a second time when...