An Excess Contribution happens when you put more money into a retirement account than the rules allow for that year. Each type of retirement plan, like a 401k or IRA, has annual contribution limits set by the IRS. If you go over that limit, the extra amount is considered an excess contribution. Leaving it in your account without fixing it can lead to penalties or extra taxes. To avoid those consequences, you can usually remove the extra amount and any earnings it made by a certain deadline. It’s a good idea to track your contributions across all your accounts to make sure you don’t accidentally go over the limit. If you’re unsure, checking with your plan provider or a tax advisor can help you stay on the right track.