The problem I have is (1) I caught the excess before April 15, (2) I contacted my 401K company before April 15 (actual date April 9), (3) they withdrew the proper amount from my account on April 9, and (4) and I received a physical check for the proper excess amount on their check dated April 10. HOWEVER, they classified it as an in-service withdrawal, charged me a $35 processing fee and withheld Fed taxes (which didn't seem right). Then later (after April 15) they called me to inform me that it is consider a "in-service withdraw" and not a "return of excess deferred amount". Should I be concerned? If so, what are my options?
