Question

Excess 401K contribution because of job changes in 2018?

Forum|Forum|3 years ago
August 30, 2022
1 reply
0 views

I changed my job in 04/2018, and totally forgot the 401K thing until now.

When I was with my previous work, I contribute about $7000 (prior to 04/2018). Then with my current work (still working for the same company now), from 04/2018-12/2018, I contribute about $17000. So, I made excess contrition about $5000. I found this until now (2022).

My current 401K is with TROWEPrice, they said they could not release the excess fund since it is after 04/2019. And according to plan guide line, I have to wait until 60 years old or change the job, then they allow withdraw. And because of this, I can not get any new form from my current company for tax purpose to fix this.

What can I do to fix this now? Really there is no way?

I understand there will be penality, etc. since it was about 4 years ago. But it has to have a solution for this. or, I have to change the job?

I tried to call IRS, but in the waiting line forever, never had someone pickup the phone.

Thanks

TurboTax Business Windows

Critter-3

Sorry but there is NOTHING you can do about this issue at this late date ... when the excess contribution was made you should have been taxed on the excess back on the 2018 return AND you will also be taxed on the distribution when it is made later ... effectively you are taxed on that excess twice because you did not get this corrected timely.

U

urlreaderAuthor

I understand I have to be taxed twice. My question is: how can I report tax and withdraw excess 401K now ?

TROWEPrice does not release the excess amount, then I can not have the new 1099 (with correction), then can not report changes.

Does this mean I have to wait for changing the job or 60 years old (which is far away in the future) to fix this?

I just think my case can not be the unique case, somebody has to have the same issue before.

Thanks

K

krvenkat

Hi ,

Checking what did you do to fix this issue? Even I noticed this year in 2022 that I made excess 401k contribution for 2020 tax year of $600 amount. Wanted to check how to fix it ?