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Level 2
posted Jul 14, 2019 6:54:53 PM

I just found out that I have exceeded 401(k) contribution limit for the current year. How do I remove it so I do not incur IRS penalty?

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1 Replies
Level 15
Jul 14, 2019 7:31:48 PM

Talk to the 401(k) plan trustee about returning the excess plus any earnings.    They will issue a 1099-R showing the return that you will use to file your 2019 tax return.

 

For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf

 

Note that this is a 2018 pub so it refers to the 2018 tax year - just adjust the years for 2019.