Submitted by Pogingolsen t3_zzy2ww in personalfinance
So I just noticed that in my 401k account, excluding the employer match, I have contributed $20,700. Is this something that I should worry about?
Comments
Pogingolsen OP t1_j2easft wrote
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
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!
Humble_Signature_993 t1_j2e91pz wrote
The last $200 is probably counted as post-tax contribution.
plowt-kirn t1_j2ebiok wrote
Does your plan support after tax contributions?
Pogingolsen OP t1_j2ebskg wrote
Yes.
plowt-kirn t1_j2ecu0g wrote
Then there is your answer.
(Note that after-tax is not the same as Roth.)
trilliumsummer t1_j2ev567 wrote
The plan may let you roll over post tax to Roth IRA. I screwed up and had some money in post, but called and my plan lets me roll it over even though I’m still employed. Took less than 10 minutes on the phone.
kepler1 t1_j2extgb wrote
In your 401k online account, do you have a tab/menu option that shows sources of contribution? This should be able to tell you if that is a post-tax contribution or you really have contributed too much to pre-tax bucket.
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JLH35 t1_j2e9r2x wrote
You may have to file a return of execess, give it a google
StaggeringMediocrity t1_j2eahfs wrote
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.