Self Employed 401(k) - Employer Over Contribution

[rcrawf02]

I am the sole proprietor of an LLC with no employees and I contributed to my self employed 401(k) in Nov 2019 as the employer (employer nonelective contributions) for the 2019 tax year. In reviewing my contribution while doing my taxes (now Feb 2020), I found that I had over contributed based on exceeding 25% of net income.

Since I am prior to the April 15 tax deadline, can I adjust my contribution to bring me back below my contribution limit? Otherwise, what are my options?

[SusanY1]

Yes, you can withdraw the excess contribution.  As you indicated, you should remove this contribution,  plus any earnings on that excess contribution, prior to April 15th, 2020. 

Your plan administrator can help you take care of this and it will be reported next year in TurboTax.

[rcrawf02]

I was able to reassign the contribution to be partly employer and partly employee contribution. 

This pushed me over the limit for individual 401(k) contributions because I had contributions from another W2 job. I wrote a letter to my plan provider for an excess deferral in the amount that I was over.