Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [excess-contribution]

81 questions
28
votes
2 answers

What happens if you violate an IRS limit by less than 50 cents?

Not entirely sure how, but between pass-through contributions, payroll deductions, and a manual contribution at the beginning of last year that was supposed to cover the gap caused by the inability to elect contributions that weren't an even dollar…
ShadowRanger
  • 695
  • 6
  • 13
27
votes
2 answers

Could my employer match contribution have caused me to have an excess 401K contribution?

Could my employer's match have caused me to have an excess 401K contribution? For 2020, I contributed the maximum into my 401k-Roth, $19,500. I also made a catch-up contribution (I'm eligible) to my 401k-traditional of $6500 for 2020. So I believe…
Ira
  • 273
  • 3
  • 4
17
votes
4 answers

Could excess 401(k) contributions be used to game/maximize matches from different employers?

Suppose I max out my 401(k) really early. This avoids the risk that if I lose the job I would have lost the chance to contribute to it fully. However there is another risk. My company doesn't match. Suppose I do lose my job in the middle of the year…
user102008
  • 17,734
  • 2
  • 30
  • 49
10
votes
1 answer

How can I self report and undo Roth IRA contributions, due to exceeding the AGI limit?

Contributions for Roth IRAs can be made through April 15 of the following year. Without getting into philosophical arguments about dollar cost averaging, my general principle has been to put the money into the market as early as possible. Since I…
Anonymous
  • 101
  • 2
9
votes
1 answer

Withdrawing HSA excess contributions?

I just got married a couple of weeks ago. I have a self-coverage only HDHP through my employer, with an HSA funded by my employer ($3000 per year). My husband has a family-coverage HDHP through his employer, and self-funds his HSA ($6550 per year).…
C. Sharp
  • 91
  • 1
  • 2
8
votes
2 answers

Why are excess HSA/IRA/401k/etc contributions allowed?

I accidentally made an excess contribution to my HSA (or my employer or HSA custodian made a mistake, it's still not clear). I know what I need to do to correct it, but I'm curious, why is that allowed to happen in the first place? The HSA custodian…
Ian Dunn
  • 271
  • 2
  • 14
8
votes
4 answers

Why is my 401k manager recommending me to save more?

I am currently contributing enough to hit the limit (~$18000) per year and get a match of 100% for 4% of it. My 401k provider (Fidelity) just sent me a quarterly progress email and suggests that I save more. Say 15%. If I do so, I'll cross the 401k…
perennial_noob
  • 1,946
  • 3
  • 15
  • 35
7
votes
2 answers

What happens to the company match for a 401k over-contribution?

Suppose that I change jobs halfway through the year. My first employer matches 50% of 401k contributions. By the time I leave, I've already contributed enough to hit IRS limits: $18,000 in my contributions with $9,000 matching. My second employer…
Andrew Mao
  • 221
  • 2
  • 6
7
votes
1 answer

Do Roth 401(k) and Roth IRA plans share the same annual contribution limit?

I've contributed $2000 to my Roth 401(k) plan through my employer, and $4000 to my Roth IRA plan that is totally separate from my employer. My accountant says that the limit on Roth IRA contributions is $5000 for my age and says that I've…
ChezMix
  • 73
  • 2
6
votes
2 answers

Roth IRA excess contribution removal infinite loop?

I'm dealing with correcting an overcontribution to a Roth IRA due to income limits, and my head hurts. Here's the gist of my problem. I contributed $5500 to my Roth in 2016. In March 2017, I went to file my taxes and discover based on my MAGI of…
aggieTaxes
  • 141
  • 6
6
votes
1 answer

Recovering over-contribution to Social Security between two employers?

My wife changed jobs mid-year 2014 and her new employer took over $6K in Social Security tax withheld. Her first employer withheld over $5K making it a total of $11,298.98 in Social Security tax withheld. A quick Googling shows that the maximum for…
Tom
  • 377
  • 1
  • 3
  • 8
6
votes
2 answers

Best Option to Fix IRA Contributions and Do I Need to Do Tax amendments for Previous Years

Please help!! I contributed $6000 to Roth IRA in 11/3/2020. In 12/22/2020 I contributed to Traditional IRA $6000 (I did not know that $6000 was for the combination of Roth and Traditional). In 1/14/2021, I converted my $6000 Traditional to Roth (I…
Rachid Brah
  • 71
  • 4
6
votes
2 answers

How can I correct over-contribution to an IRA?

I contributed $3000 to a traditional bank IRA and forgot about it. Later, I contributed an additional $6000 to an IRA annuity. So, I over contributed by $3000. How can I correct this error?
linda
  • 61
  • 1
5
votes
1 answer

Avoiding ammending taxes for forthcoming 1099-R for 2011 when filing 2010 for IRA

I over contributed to my traditional IRA last year. This was then converted along with all my traditional IRAs into Roth IRAs in 2010. Then in 2011, I recharacterized the excess and earnings from Roth back to Traditional IRA and then did removal of…
WilliamKF
  • 1,833
  • 4
  • 24
  • 34
5
votes
1 answer

Excess HSA Contributions Used For Medical Expenses

I have a potential employer with a strange solution for healthcare. They wish for you to select a HDHP from the marketplace with an HSA then they fund the HSA to pay for the healthcare premiums. I gather from the IRS 502 that paying premiums…
Branco
  • 151
  • 2
1
2 3 4 5 6