Question

I have a closed out 401K with previous employer and current employer. Over 18,500 limit combined. What can I do?

Forum|Forum|7 years ago
June 3, 2019
12 replies
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TurboTax Free Edition Online

Employee

"Closed out"??? what does that mean? Did you take a distribution? The $18K limit is for contributions, not withdrawals.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

R

rerwinAuthor

Not closed out. Balance left after leaving company.

R

rerwinAuthor

That balance and new employer balance slightly over limit

VolvoGirl

Employee

Do you mean you went over the max because you changed jobs and contributed to both plans in the same year?

macuser_22

Employee

There is no limit to the "balance" in a retirement account. (Some people have millions in their 401(k) plans. The limit is on NEW contributions to the plan for the year.

Are yiu saying that you contributed to both the old and new plans in the same year?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

R

rerwinAuthor

Yes. I contributed up to 9,098.56 with old employer. With new employer I contributed 9,900 wit new employer, so over 18,500 limit. Do I start with catch up plan?

macuser_22

Employee

Was this 2017 or 2018 contributions?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

R

rerwinAuthor

2018

Critter

Employee

If you have excess contributions you must alert the current employer of the situation & have the contributions stopped & have the excess plus earning removed preferably by the end of the tax year.

D

dmertz

Employee

You asked about catch-up. Will you be age 50 or older by year end?