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Questions tagged [excess-contribution]

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Excess (or not) HSA Contribution Problems Due to Medicare Enrollment-6 Month Rule

I'm hoping someone can guide us to solve our HSA problem. In April 2024 my wife filed an application for Social security benefits (she will be 70 this year), which she supposed to receive in July 2024....
Fisherman's user avatar
1 vote
1 answer
37 views

Is it permissible to make contributions to a SEP-IRA in excess of the current year's maximum and allocate them to the following year?

Is it permissible to make contributions to a SEP-IRA in excess of the current tax year's maximum allowed amount if those excess contributions are allocated to the following tax year?
Tim's user avatar
  • 151
0 votes
1 answer
45 views

Excess deferral to AFTER-TAX, NON-ROTH 401K bucket. Will I be double-taxed/penalized?

I recently went over the 66k limit for employer + employee contributions to 401k with my most recent paycheck (I have one paycheck left for the CY). I'm under the 22,500 pre-tax limit. I called ...
dbugg's user avatar
  • 1
6 votes
2 answers
728 views

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/...
Rachid Brah's user avatar
1 vote
1 answer
147 views

How do I reverse an excess 401K Contribution?

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 ...
Kint Kant's user avatar
  • 709
0 votes
1 answer
95 views

How to calculate loss for the purpose of return of excess funds in Roth IRA?

Me and my wife maxed out our Roth IRA contributions for tax year 2022. Few months ago, we both switched to new jobs. Now, our combined income puts us above the income limit to contribute to Roth IRA. ...
haku's user avatar
  • 133
2 votes
1 answer
93 views

(Over) Contribution between two employers for the Roth 401k case to maximize matching

I know there are a few question about changing employers during a calendar year and trying to maximize company match between the two for 401k plans. I've read through them and I think I understand ...
achao's user avatar
  • 151
0 votes
2 answers
621 views

Can I treat a SEP contribution made in 2021 as partly for 2020 and partly for 2021?

I recently discovered I miscalculated my max contribution to my SEP for 2019 and 2020 so I MAY have excess contributions in 2019 and 2020. See What is the contribution limit for self-employed person ...
Matt Chambers's user avatar
28 votes
2 answers
8k views

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 ...
ShadowRanger's user avatar
1 vote
1 answer
151 views

Return of excess 401k contributions after rollover to IRA

Suppose the following: Contribute $50,000 to pre-tax 401k 401k grows by 5% 401k is rolled over to traditional IRA What is the proper course of action to return the excess 401k contribution? What ...
arcyqwerty's user avatar
  • 1,271
1 vote
0 answers
62 views

401k refund if an HCE front-loads 19.5k, leaves on March 1, and the ADP test fails?

Let's say it's your third calendar year working for a company with no vested employer match; you're classified as HCE. You make a mistake of front-loading 90% of your income in the first two months, ...
cnst's user avatar
  • 495
27 votes
2 answers
4k views

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 ...
Ira's user avatar
  • 273
2 votes
1 answer
106 views

Why will I be receiving a 1099-R in January of 2022, for income that is supposed to be reported for tax year 2020?

I overcontributed to my Roth IRA by $2,000 in 2020. I realized this when working on my 2020 taxes this year, so withdrew the excess contribution and respective earnings of $277.50. Now I received a ...
user avatar
8 votes
2 answers
1k views

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 ...
Ian Dunn's user avatar
  • 271
0 votes
1 answer
65 views

Excess contribution to RRSP

Consider a hypothetical case of a Canadian tax resident living in Ontario and making CAD 100K each year. Suppose they contribute CAD 50K in 2020 to an RRSP. CAD 27230 is the contribution limit for ...
user2371765's user avatar
  • 1,084
4 votes
2 answers
565 views

Intentionally paying tax on 401K excess contributions to take advantage of employer matching?

This is a little bit of a twist on another question that has been asked in this community. My wife started a new job in February, after which she had contributed about $2,000 through her previous ...
Jason Rubinstein's user avatar
2 votes
1 answer
130 views

Last year I left excess 401k contributions in the account. Do I need to do anything this year?

In tax year 2018 I over-contributed to my 401k due to job change. Although I discovered the problem before the tax return filing deadline, the bank refused to return the excess funds. I've consulted a ...
Ark-kun's user avatar
  • 429
1 vote
0 answers
39 views

Deadline for withdrawing excess HSA contributions

Due to changing jobs, I've exceeded by HSA contribution for 2018 by several thousands of dollars. I went to a tax preparer and we've filed form 5329 for tax year 2018 to pay 6% tax on that excess. ...
Ark-kun's user avatar
  • 429
1 vote
0 answers
31 views

Excess 401k deferral: which account?

I switched jobs in the middle of 2019 and hence have multiple pretax 401k accounts (traditional). I have excessive deferral when I combine my contributions to both accounts (14k to each account) and I ...
Avgworker's user avatar
1 vote
1 answer
58 views

Recharacterizing excess Roth IRA contribution more than once

I realized that I have made excess Roth IRA contributions for 2019. I recharacterized $X as contributions to my Traditional IRA. As I was filling out my tax form, it turns out I did not sufficiently ...
Chris Ride's user avatar
1 vote
1 answer
219 views

Correcting an ineligible contribution to a Roth IRA

In 2019 I contributed to a Roth IRA, but while preparing my taxes I realized that I am over the income limit for contributing to a Roth IRA. I would like to recharacterize this contribution to a ...
J Cameron's user avatar
  • 113
2 votes
2 answers
374 views

Withholding taxes when removing an excess contribution?

I am attempting to remove an excess contribution made to my 2019 Roth IRA account before 2020 tax deadline. While removing the contribution, Vanguard asks for whether federal and state taxes should ...
oneCoderToRuleThemAll's user avatar
3 votes
1 answer
204 views

How to correct periodic excess Roth IRA contributions, with Direct Rollover within the same timeframe?

In 2019, I accidentally contributed to my Roth IRA, despite my income being over the limit. I made periodic contributions of $200 every month, totaling $2400, which I plan to remove before the April ...
Kevin's user avatar
  • 131
2 votes
1 answer
212 views

Does removing excess Roth IRA contribution reduce amount contributed?

The title of this question might not make sense, so let me explain. The "excess" contribution here refers to the full 6000 (filing as single) amount in the situation in which the person is not ...
nehcsivart's user avatar
1 vote
1 answer
204 views

Excess Roth IRA Contributions calculation?

Due to my income in 2019, I exceeded the Roth IRA contribution limits. Now I am trying to figure out how much to withdraw and how to report it. I have an account with Vanguard. So I have the ...
oneCoderToRuleThemAll's user avatar
1 vote
0 answers
76 views

Excess contribution to 403b

We had 39000 taken out from our payroll last year and put into the company 403b plan. Now we realize that this is more than the 25000 allowed. (19000 + 6000 over 50 years old) How can we handle ...
Dave Gartner's user avatar
3 votes
1 answer
127 views

Return of excess employer contribution after transfer to IRA

A few years ago, I had an internship, and had to set up an account with the employer's retirement fund company. A couple of years after leaving the company, I was closing out old accounts, and ...
ec92's user avatar
  • 131
3 votes
2 answers
330 views

Past employer wants to sue for over contribution on their part to my HSA. years 2017 and 2018 can they do this?

My previous employer (March of 2019) has discovered that they were paying into my HSA account the amount for a family when I am a single person. This happened in 2017 and 2018, the amount they ...
hendersnax's user avatar
8 votes
4 answers
4k views

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 ...
perennial_noob's user avatar
1 vote
1 answer
68 views

Can I withdraw Small Overcontribution from RRSP?

My contribution room for my RRSP is 23.5k, I accidentally contributed 25k though. I realize my over-contribution is within the 2k that CRA allows, but I would prefer to keep the extra $1,500 outside ...
Belgin Fish's user avatar
0 votes
2 answers
187 views

I have some money left

I got a scholarship, which is more than what I need for the period of my studies. So, approximately 300 to 400 euro is in excess, what can I do with this money? I am 20.
Atrox's user avatar
  • 1
1 vote
1 answer
313 views

I accidentally recharacterized nondeductible IRA contribution to Roth

In 2018, I made a catch-up contribution($1000, nondeductible) to traditional IRA). Then by mistake, instead of Roth conversion, I accidentally requested "recharacterization to Roth" which I didn't ...
Jennifer P's user avatar
1 vote
0 answers
56 views

Excess Roth IRA Contribution - How to Capture Earned Interest No 1099 r?

I contributed over the limit to my Roth IRA in 2018. I realized this and have withdrawn the excess contribution plus earnings in 2019, and have not yet filed my 2018 tax return. My Financial advisor ...
TwoHeartedKale's user avatar
4 votes
2 answers
211 views

I'm over the MAGI limit for 2018 for the Roth IRA I already contributed to. Now what?

At the beginning of last year, I contributed the maximum amount to my Roth IRA, as I typically do. Late in the year, I received a very unexpected and very large bonus. I realized when I got my 1040 ...
guest's user avatar
  • 43
6 votes
2 answers
628 views

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 ...
aggieTaxes's user avatar
3 votes
3 answers
735 views

How do you correct an excess Roth IRA contribution after the October 15th deadline?

I'd like a clear answer on the process of correcting an excess IRA contribution. My Roth IRA has an excess contribution from 2 years back. This means for 2017 I will be paying a 6% penalty. My ...
cmcginty's user avatar
  • 206
1 vote
1 answer
1k views

How does the IRS handle 401k excess contributions with employer match?

My situation is a bit complicated: Worked at company A, maxed out 401k in 2017 Left company A, rolled over 401k to IRA Started at company B. Told company B to not contribute to my 401k in their on ...
hereverycentcounts's user avatar
3 votes
1 answer
308 views

Applying Roth IRA excess to next year

I contributed $5500 each to both my traditional and Roth IRAs for the 2017 tax year, so I need to handle the over-contributions. From what I can tell, one option is to apply the 2017 Roth ...
mb1551's user avatar
  • 31
1 vote
2 answers
431 views

What is the penalty of contributing to a Coverdell ESA while earning over $110k MAGI?

Regarding Coverdell Education Savings Account (ESA) (https://www.irs.gov) Q. Who can contribute to a Coverdell ESA? A. Generally, any individual (including the beneficiary) whose modified ...
nipponese's user avatar
  • 209
5 votes
1 answer
293 views

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 ...
Branco's user avatar
  • 151
4 votes
1 answer
114 views

Roth IRA excess contribution to pay bank fees

I borrowed $5500 from a Roth IRA from tax year 2014 in late December of 2016 and I put the money back in within the 60 day period so that it is a rollover. I already contributed my maximum for both ...
hyaria's user avatar
  • 43
7 votes
2 answers
2k views

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 ...
Andrew Mao's user avatar
2 votes
1 answer
132 views

HSA low balance options - $15 yearly fee vs yearly 6% Excise Tax ($9) vs?

I have just under 3k in my HSA. I don't have a HDHP anymore, so I can't contribute anything. My bank wants $10/month if the balance is under 3k. In 2015, I contributed $150 at the beginning of the ...
scw's user avatar
  • 145
3 votes
1 answer
975 views

HSA Employer Excess Contribution: W2 vs Other Income?

Form 8889 instructions state that excess employer contributions should be included in income on Form W-2. (Box 1 I assume?) If this is not done, instructions state that excess employer contributions ...
mk33's user avatar
  • 191
3 votes
1 answer
843 views

How is employer HSA excess contribution taxed?

My previous employer made an excess contribution to my HSA account. They are not particularly interested in assisting me, so it looks like I will have to correct this myself if anyhow possible. If I ...
mk33's user avatar
  • 191
2 votes
0 answers
50 views

Consequences of contributing too much to your Roth IRA? [duplicate]

What happens if you contribute to your Roth IRA at the beginning of the year, but then find out that you're over the allowable income to be able to contribute? You might not always know at the ...
John Stanford's user avatar
3 votes
2 answers
3k views

How are contribution limits enforced on Roth IRAs for people with high income?

Say I make over 194k and can contribute 0. https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2016 I know my brokerage Roth IRA ...
JAM's user avatar
  • 167
1 vote
1 answer
170 views

Is Return of Excess from an IRA Subject to Penalty?

I made a deposit into a Traditional IRA a few days ago, intending to do a Back-Door Roth. As it turns out, it wasn't a good idea (see Any Downside to Backdoor Roth?). In filling out the forms to do ...
Phil Sandler's user avatar
  • 3,571
4 votes
2 answers
468 views

How should I deal with over-contributing to a Roth IRA?

While doing my taxes, I came to the realization that my income for 2015 is above the limit to contribute the full $5500 to my Roth IRA, but below the limit where I am unable to contribute. My ...
SethMMorton's user avatar
4 votes
1 answer
474 views

HSA excess contribution in 2015 moved to 2016 contribution, W-2 shows total amount including excess

TL;DR: my W-2 indicates that my HSA contribution for 2015 is $4137. I had my bank move the 2015 excess contribution ($787) to 2016's contributions. Is it OK to change the value reported on my taxes (W-...
jbowman's user avatar
  • 143