Hi
I spoke to my 401K Financial Institution first.
The Letter Of Instruction stated that I was correcting a IRC 404(a)(7) excess annual contribution.
In the letter, I specified how much I had originally contributed, and the date of contribution, and the reason for the excess contribution. I also specified the amount that should be removed from the account as an Excess Contribution.
I also specified that this request is made in accordance with IRS EPCRS SCP (Self Correcting Program).
I then calculated the earnings on the excess contribution which also were to be removed. The calculation is documented in IRS Form 590A, Worksheet 1-3, pg 30.
In my case, I removed the Excess Contribution 2 weeks after it was made, and the change in value was only $33...so I removed $33 more than the excess contribution to adjust for the small gain in those 2 weeks.
Since I also had a non-retirement account at the same financial institution, the requested amount was moved from the 401K to the non-retirement account.
Hope this helps...good luck!
