I contributed around 10K with no employer match. I changed jobs in the mid year, now the I have new 401K with Match. I want to max it out so I can get the match in full. How do I take out the contribution from the last employer since there was no match? I still have 3 more months to sort this out.
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Have you already contributed over the max year to date and you're wanting to learn how to correct the situation, or you've contributed 10k year to date and you're wanting to learn how to calculate how much to contribute monthly in order to max out and get the match?– shooverCommented Sep 15, 2022 at 18:04
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1@shoover the OP wants to remove the 10K contributed earlier and contribute them again through a new employer, getting the match.– littleadvCommented Sep 15, 2022 at 18:18
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@littleadv Hmm, yeah, what if that 10K was already invested and the market went down and the account only has $8K worth of shares in it now?– shooverCommented Sep 15, 2022 at 18:32
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@shoover wonderful question, I'm guessing that would be one of the reasons why the custodians wouldn't want to deal with this. Generally for excess contributions withdrawal, the gain on the excess should be withdrawn too and recognized as taxable income, but not loss.– littleadvCommented Sep 15, 2022 at 18:34
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Are you sure you need to do this? You contributed 10K, you still have 10.5K to go Most companies don't do unlimited match, they limit ti to 6 or or 10% of what you earn with the company that year. Any percentage above that won't be matched anyway.– mhoran_psprepCommented Sep 16, 2022 at 12:38
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1 Answer
You contact the custodian and ask for an excess contribution withdrawal.
However, there's a decent chance that the custodian will refuse, since you have not in fact contributed in excess. I know of folks in a similar situation such as yours where the custodians refused to remove the former employer contributions since the excess only happened (if at all) at the latter employer. I also know of folks who were in fact able to withdraw earlier contributions. YMMV.
answered Sep 15, 2022 at 18:02
