Retirement tax questions

This means you will pay tax on the excess deferral now and again when you take it out at retirement.  Only you can determine if you will earn enough to cover your tax, both with your employer match and earnings, in the long haul.

• A participant who fails to receive a distribution of the excess deferrals does not receive basis in his pre-tax deferral account equal to the amount of excess deferrals. See IRC Section 402(g)(6).
• Snap-Shot - Consequences to a Participant w/Excess Deferrals

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