Hello, On a 401K Overcontribution scenario (In a job change), could anyone share their experience of correction on the account with the old employer? (Maybe with Fidelity) To elaborate the scenario: -> Say my contribution at prev employer this year is $10K, I contribute 19.5 in the new 401K account (with the new employer), with an overcontribution of 10K for the year. -> Correction (Looking at this scenario if possible): Then reach out to my admin of the older 401K account (the one with my previous employer- fidelity) and request to withdraw the excess (10K here) Please share your thoughts or experiences (with Fidelity for the correction, Request process, due date, penalty, tax complications, etc) here. Thanks! #401k #investments #fidelity #tax
Personal Finance
Yesterday
3003
Wife made 55k last month on OF. Should I quit and pursue OF?
Tech Industry
Yesterday
1900
Net worth crossed 2.5 M today
Personal Finance
Yesterday
1696
Asking girlfriend of 5months to split bills went BAD
Tech Industry
Yesterday
982
Why are boomers not retiring
Tech Industry
Yesterday
626
Meta Verbal Offer - E4 Downlevel
You should talk to payroll asap. You get taxed and potentially a penalty for overpaying. Get a paystub from your last job with how much you contributed there. Payroll may work it out for you or refer you to your new 401k provider, but what ends up happening is they refund you the over limit contribution with a check, taxed as normal income
it happened with me, you have to get the extra contribution as distribution, reach out to your 401k plan administrator , they will help you out. I think you can correct it my march/April of the following year.
I believe the over contribution is refunded to you, but taxed