Question

Overcontributed to solo 401K, brokerage won't let me take out excess, how do I file with TT?on phon

Forum|Forum|2 years ago
September 29, 2023
1 reply
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Overcontributed to my solo 401K, understood that I can remove excess up to legal tax filing date, which is 15 October in Los Angeles, CA (because of emergency status). My brokerage says I had to do by 15 April. So questions:

1. Who is right (trying to get IRS on phone disconnected me on hold after 40 minute wait)?

2. If I am right, how do I get them to requalify it prior to filing?

3. If they are right, I have to take out a regular distribution of the excess (?) and pay a penalty, how do I handle this and calculate in TurboTax?

Thanks,

Adam

P

psyadamAuthor

Okay spoke with IRS, too late to take out the distribution, no penalty EXCEPT pay tax on it upon eventual withdrawal, hence double tax. Humbug. Lesson learned.