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New Member
posted Feb 24, 2022 9:19:27 AM

Roth 401k overcontribution question

I switched jobs midyear and accidentally contributed over 19,500 to my 401ks.

  • Job A I contributed 9,750 regular 401k
  • Job B I contributed 9,750 regular 401k and an extra 4,000 in a Roth 401k.

How do I correct this? I figure I have to contact my 401k plan administrator and ask for them to return my 4,000 from my Roth 401k. I understand I'll get a 1099-R on that where I'll report any gains on my 2022 tax return.

How do I handle my 2021 tax return? It'll show the over contribution. How do I indicate that I'm correcting it?

0 3 911
3 Replies
Level 15
Feb 24, 2022 11:22:44 AM

Since you are obtaining the return of excess contribution from the Roth 401(k) account, nothing needs to be done on your 2021 tax return because Roth contributions were never excluded from the taxable amount in box 1 of your W-2.

New Member
Feb 24, 2022 11:40:24 AM

Doesn't my overcontribution get flagged?  They don't need to know that I'm resolving it?

 

I'm assuming I'm correct that I need to contact my employer about having the overcontribution withdrawn, even though it's a Roth 401k, right?

Level 15
Feb 24, 2022 7:07:44 PM

Yes, you need to contact the employer to have the corrective distribution made.  It needs to be done by April 15.