StaggeringMediocrity t1_j2eahfs wrote on December 31, 2022 at 4:58 PM

I would contact your plan administrator ASAP to see if they can fix this. They should not have allowed you to contribute more than your limit for the year. Unless you're 50 or older, in which case the limit is $27,000.

Or is this a case where you had two 401k plans this year? In which case they would have no idea what you contributed to the other.

I believe if the excess is removed by April 15, then there won't be a penalty. The excess will be taxable for 2022, and any gains on that excess amount will be taxable for the year it was removed (2023). And a 1099-R will need to be filled out for the correction. But your plan administrator should be able to help you with that.

Pogingolsen OP t1_j2easft wrote on December 31, 2022 at 5:00 PM

Okay thanks. I'll give Schwab a call next Jan 3rd. No I only have one 401k plan. I just hope this doesn't delay anything since tax season is coming up.

Happy New Year!

StaggeringMediocrity t1_j2edf8h wrote on December 31, 2022 at 5:17 PM

Might be worth checking with your payroll department too. Between them and the plan administrator, they should have cut off contributions once you hit your limit. I would ask how they let that happen.

And Happy New Year to you too!