Good afternoon,
I had a question about Roth 401k's and tax implications as this is my first time having a 401k and I don't fully understand what can and cannot be done with them.
In 2024, I contributed $9,250.58 to a Roth 401k not knowing that there are limits on how much can be contributed and when I started filing my taxes, I discovered that I was being penalized for having contributed too much. I did some research and called my financial institution to see if they could recharacterize the $2,250.58 (plus interest) into a traditional 401k so as to avoid any tax penalty for 2024 as I saw most websites suggest. I had not contributed anything toward a traditional 401k for the year. The financial institution told me that I could not transfer any funds and that I would need to contact a tax advisor. Just trying to figure out what I can do on this front to avoid the penalty. Any help or advice would be much appreciated!
