Formula/Calculation of Return of Excess

[Anonymous]

How do I actually calculate the return of excess if I have two employers? for example: First employer's W2 states $10000(DD) in box 12a, $19000(E) in box 12b, and $2000(CASD) in box 14. Second employer's W2 states $18000(D) in box 12a-d, and $1000(CASDI) in box 14. What is the actual formula to use?

[dmertz]

Assuming that you typed the values correctly, you are WAY over the limit, by at least $19,000 combined.  Even at the first employer alone you are substantially over the limit; that employer should not have permitted that to happen.

At the first employer, are you an employee who in 2019 had at least 15 years of service with a public school system, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization)?

Were you age 50 or over in 2019?

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-403b-contribution-l...

[Anonymous]

I work at two non-profits. and I am under the age of 50 years old. How is the excess calculated with all the different numbers in box 12 and box 14?

[dmertz]

The numbers in boxes 14 are irrelevant.  CASDI is not part of your retirement contributions.

In addition to you being under age 50, I'll assume that you do not meet the 15-year service requirement to be able to make a special $3,000 catch-up contribution to the 403(b).

In total you have $28,000 in excess contributions for 2019.  The maximum permissible combined elective deferral and Roth contributions to the 403(b) is $19,000, and you are $10,000 over that, so by the April 15 deadline you'll need to obtain returns of excess contributions totaling at least $10,000 (depending on how much return of excess contribution you obtain from the 401(k) at the other employer) from the 403(b), either from the traditional account, the designated Roth account or both, accompanied by any earnings attributable to the returned excess contributions, calculated by the plan administrator.

The amount that you must obtain as a return of contribution from the 401(k) at the second employer is $18,000 minus whatever amount above $10,000 you have returned from the 403(b) so that your total contributions to the 403(b) and 401(k) do not exceed $19,000 for 2019.  If you choose to have only $10,000 returned from the 403(b), the entire $18,000 will need to be returned from the 401(k).  Whatever amounts are returned from the traditional accounts will be includible as income on your 2019 tax return.  Any earnings distributed with the returned contributions will be taxable on your 2020 tax return.

[Anonymous]

Thank you. looks like i can ignore, categories DD and G. and then, max (19k) minus categories D and E. Thanks.

[dmertz]

Correct.  Code DD has nothing to do with retirement contributions and the 457(b) contributions indicated by code G have their own separate $19,000 limit (not combined with 401(k) and 403(b) contributions).