# The Fine-Tuning Trap: Evaluating Negative Transfer and the Role of PEFT in Sub-1B Mathematical Reasoning

arXiv: https://arxiv.org/abs/2606.06920 · HTML: https://mlsanity.com/paper/2606.06920/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Mathematical reasoning, one of 17 directions in LLM reasoning.
- Builds on 7 of its 7 references that are in the map.
- First posted on arXiv 5 Jun 2026.

## Placed in

- LLM reasoning / [Mathematical reasoning](https://mlsanity.com/lr/mathematical-reasoning/)

## Builds on (most cited first, 7 of 7)

- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [Overcoming catastrophic forgetting in neural networks](https://mlsanity.com/paper/1612.00796/) (2016)
- [The Lottery Ticket Hypothesis: Finding Sparse, Trainable Neural Networks](https://mlsanity.com/paper/1803.03635/) (2018)
- [An Investigation into Neural Net Optimization via Hessian Eigenvalue Density](https://mlsanity.com/paper/1901.10159/) (2019)
- [On the Stability of Fine-tuning BERT: Misconceptions, Explanations, and Strong Baselines](https://mlsanity.com/paper/2006.04884/) (2020)
- [MobileLLM: Optimizing Sub-billion Parameter Language Models for On-Device Use Cases](https://mlsanity.com/paper/2402.14905/) (2024)
- [Deep Information Propagation](https://mlsanity.com/paper/1611.01232/) (2016)

## Abstract (arXiv)

Deploying Small Language Models (SLMs) on edge devices requires efficient fine-tuning strategies that adapt models to new tasks without degrading their general capabilities. In this study, we benchmark five sub-1B models (135M-1B) on mathematical reasoning tasks and uncover a critical vulnerability: Full Fine-Tuning (Full FT) actively harms performance in models under 300M parameters, often dropping accuracy below zero-shot baselines. This "negative transfer" makes Parameter-Efficient Fine-Tuning (PEFT) not just an efficiency preference, but a stability requirement. We find that while Low-Rank Adaptation (LoRA) and Weight-Decomposed LoRA (DoRA) perform comparably, their strengths vary by task; DoRA excels in complex reasoning (GSM8K), while LoRA dominates pattern matching (OrcaMath). In particular, Full FT is outperformed by LoRA on aligned models (Qwen2.5-0.5B) and even by simple 5-shot In-Context Learning on the smallest architectures (SmolLM2-135M). Based on these findings, we recommend defaulting to PEFT for all aligned sub-1B models and caution against Full FT for any architecture smaller than 500M parameters to prevent catastrophic forgetting. Reproduction of this work can be found at https://github.com/gulguluu/tiny-slm-finetune-compare.