I am in a strange situation, I was working through my own S corp and had contributed
$6000 as employee contribution in Individual 401K through my payroll company.
I joined a new employer in mid of 2019 on W2 ( full time) and started contributing x amount in my new employer's 401K to ensure I get the employer matching contribution. I am no longer contributing to my individual 401K .
I just noticed that if I continue to contribute the x amount to my new employers regular payroll then I will max out the max allowed amount for 2019 FY of $19000 and would result in over contribution by amount $2100 or would have contributed $21100 by last pay check of 2019.
I have 2 choices
1) Stop my payroll deduction in new employers plan and ensure I am within $19000 limit
2) Withdraw $2100 from my individual 401K and ensure I am within the $19000 limit and report $2100 as income on my 2018 tax returns and amend my W2. I need to do this before April 15 of 2020.
With option 1, I lose my new employer's matching contribution in his 401K plan.
If I go for option 2 then It seems like I need to withdraw $2100 from my individual 401k and then amend my W2 with the payroll company and report that as income.
https://www.investopedia.com/ask/answers/158.asp
Please suggest if Option 1 is ok for me or should I got for option 2 and lose the new employer's matching contribution?
Thanks much
