@angel888 wrote:
@macuser_22 @kberry7211
What would be happened if I don't withdraw the over contributions?
If you don't or can't remove the excess, Turbotax will add the excess back to your taxable income and you will pay income tax on it. This does not create a taxable basis in your 401(k), so you will pay tax on the same money again when you withdraw it in retirement (double taxation). For $150 excess contribution, that's not so bad, but it it's the principle that counts.
The tax law deadline for removing the excess is definitely April 15 (or April 18 this year due to the weekend and an official Washington DC holiday. Whether a plan administrator is legally allowed to set an earlier date is something I can't opine on. But when the excess is left in the account for whatever reason, that's what happens.
