Hello,
I read different posts about over contributions to 401K. So, I am aware of certain action items but have some follow up questions
Context is that I was with employer A till March ending (worked there for 10 years) and started with a new employer B in May. So, I was aware that I made some 401K contributions till March. However, In April, my old employer A paid off left over PTO and bonus and I did not realize until now that 401K was cut from there as well. Due to the 10 year PTO and fiscal year bonus is paid at the end of March, I ended up contributing a lot more to the 401K via employer A that I did not account for..
I am aware that I can correct this by calling employer or plan admins
- I want to request my plan admin for employer A to return the over contributions. Are they obligated to do that or can they tell me to go deal with my current employer B? I prefer requesting employer A because I had a higher match from current employer B.
- If they return, will they take away the employer A matching contributions?
- Lets say I over contributed by 5000 and the market went down by 20%. Will they give me back 4000 or 5000
- If they issue 4000, can I claim capital gains loss of $1000?
- Will they issue 1099-R in such a way that I dont have to pay penalty on these but pay taxes?
thanks
JimF
