Why is Fidelity Urging me to exceed the ROTH IRA Limit?

Investment Tax

Hello. Maybe this is a stupid question, but I need to know. I am in the midst of filing my taxes and have been informed by FreeTaxUSA that I contributed more to my ROTH IRA than the limit of $6,500, and I will be penalized for it. I was not even aware there was an annual contribution limit, which makes me a little bit of a dummy.

But why then on my Fidelity investment site does it have all this encouragement to contribute even more? "Good job on contributing 6% of your paycheck, but it would be a lot better if you contributed 10%" kind of stuff. A little car that says I'm really far from the goal they set for me to have 1x my salary in the IRA by the time I'm 30.

Why is there nothing saying "Hey, if you contribute that much money, you'll be penalized by the government" ?

Am I just a jackass? Is the answer Fidelity is just a jerk and wants more of my money? I was trying to be a good saver and now I'm being penalized lol I just want some answers. Thanks for reading

Posted Apr 1, 2023, 7:00 PM UTC

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