I have two 401k's. I maxed 401k #1, and put nothing in 401k #2. If I receive a 1099R code 8 (overcontribution) with a $15k disbursement from 401k #1, can I put it in #2?

[Kyle210]

Basically, for 2022 there is a $20,500 contribution limit across all 401k's. Does the overcontribution disbursement free up space for me to contribute to my second 401k? This all happened around the middle of 2022.

[DanaB27]

No, you can only contribute to the annual limit ($20,500 for 2022 and $22,500 for 2023). If you withdrew only the excess plus earnings then you reached already the maximum contribution limit.

[Kyle210]

The $15k returned was due to discrimination testing, not because I contributed more than $20500. If you subtract the $15k returned to me, then I only contributed $5,500 to my 401k in 2022.

[DanaB27 · Accepted solution]

Please, be aware that the deadline to contribute to the 401(k) for 2022 was December 31, 2022. 

Yes, as long as you didn't contribute more than $20,500 total for both the 401(k) you are fine.