@dmertz Phew thank you for clearing that up about the 1099-R box; however in my case the plan had labelled "Distribution Code 1: 8" which is the "no known exceptions code" so I'm screwed, they should've used Code 2 but that's something for me to deal with (8 is the qualified reason code that goes along with code 1 - excess contributions)
However what about the fundamental issue? Is there anyway one can decrease their income below the HCE limit so that one's contributions then can maximize the federal limit? It sounds like HCE/ACP test in the ERISA act was created to penalize those who plan well, make high wages and ...
The HCE test is pretty simple, for example for 2023 it's $150k -- what could one do to reduce their earnings to $149k for example? Any vehicle that's available to us? Even if it's wasting money like some kind of political contribution, etc? I'm barely scratching the HCE limit and as a result get heavily penalized just because my co-workers don't plan, don't save and as a result drive the average contribution ratio for the entire plan participants population low...which then becomes the basis for the contribution limits imposed on HCEs
Thanks
