I changed jobs in 2019 and in doing so over-contributed to my 401k, here is a summary of the situation:
- Traditional (pre-tax): $19,000 (allowable contribution, all with the previous employer's plan)
- Roth (after-tax): $10,000 (over-contribution, all in the new employers plan)
- I received $2250 in company match for the $10k in contributions (which will be taken back)
- My Roth investments have lost (YTD) about $2000
- My top tax bracket for 2019 and 2020 will be 32%
- I started the process to get the contributions returned today (4/1/2020) but the plan administrator says it will take 2-3 weeks and so I may miss the April 15 deadline.
Questions:
- Given that this deadline has been extended to July 15, does anyone know if the deadline for removing excess contributions has been extended as well? The IRS page lists April 15 explicitly and does not allow for extensions so this tells me that the extension will not apply but am hoping to be proven wrong.
- Is it possible to claim capital losses in this situation? The tax code only talks about gains.
- Any other advice from folks who have had similar experiences?
