I'm trying to complete my taxes and just realized that I contributed more than the $19,500 limit to the 401k. My previous employment made a final salary payment the first week of January 2020 and they contributed $236 into my 401k.
The current employer was not aware of this, and contributed up to the yearly limit. Turbo Tax is now telling me that I need to do a process of "excess salary deferral", by asking the plan administrator to withdrawal the difference and any related earnings.
However, my plan administrator of the current employer says that the plan has a deadline of April 15th and since we are past that, they cannot process this withdrawal. This sounds like a bit of horseS*#7, but that's what they told me. And I don't think I can ask the previous employer's plan administrator, because I have already rolled that over into a traditional IRA at another financial institution.
Since it seems that the current plan administrator is saying that I missed THEIR deadline and I cannot withdrawal the difference, what should I do?
And does it really matter given the amount is only $236. Do I just pay some % of that amount in a penalty because I paid too much into the plan. I know I'm cutting it up to the wire, but hoping someone can give some guidance. Thanks!
