Excess contribution to 401K due to job change

[Ruby226]

Hi,

I have job changes in 2024 and then this excess contributions to 401K. I have tried to reached out to both plans since last November, however no luck. 

1. will 401K over contributions have penalty? Will it be penalty every year or one time?

2. If I never got their response before the tax deadline, what should I do 2024 tax for this excess contribution amount? Where to file it for tax?

I am using Turbo Tax online. Any advice is appreciated! 

[MaryK4]

Yes, if you do not receive the corrective distribution, you will have to pay tax on the amount twice- for the year you make the excess contribution (2024) and when you receive the distribution.  You will also pay tax on any earnings when they are distributed.

TurboTax will calculate the taxes for you if you do not receive the excess distribution back before the April 15, 2025.

See Consequences to a Participant Who Makes Excess Annual Salary Deferrals to a 401(k) Plan.