Questions tagged [excess-contribution]

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40 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, ...
27
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2answers
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 ...
2
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1answer
57 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 ...
8
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2answers
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 ...
0
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1answer
44 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 ...
4
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2answers
321 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 ...
2
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1answer
110 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 ...
1
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0answers
22 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. ...
1
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0answers
26 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 ...
1
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1answer
35 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 ...
1
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1answer
93 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 ...
1
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2answers
130 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 ...
3
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1answer
122 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 ...
2
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1answer
108 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 ...
1
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1answer
146 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 ...
1
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0answers
51 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 ...
3
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0answers
69 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 ...
3
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2answers
290 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 ...
8
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4answers
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 ...
1
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1answer
48 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 ...
0
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2answers
182 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.
1
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1answer
225 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 ...
1
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0answers
48 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 ...
4
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2answers
174 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 ...
6
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2answers
477 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 ...
3
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3answers
593 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 ...
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2answers
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 ...
3
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1answer
240 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 ...
1
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2answers
358 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 ...
4
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1answer
237 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 ...
4
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1answer
99 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 ...
7
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2answers
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 ...
1
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1answer
108 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 ...
3
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1answer
796 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 ...
3
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1answer
703 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 ...
2
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0answers
49 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 ...
3
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2answers
2k 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 ...
1
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1answer
152 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 ...
4
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2answers
408 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 ...
3
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1answer
410 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-...
3
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1answer
243 views

Excess Roth IRA contributions and taxes

My wife and I contributed the maximum for our age ($11,000 combined) to a Roth IRA for the 2015 tax year. It turns out we unexpectedly made too much money to be eligible at all. I shouldn't have ...
0
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2answers
1k views

Recovering from HSA deposit coded to the wrong year?

On April 15 2015 a family member contributed $3000 to HSA #1, intending it to be coded as a 2014 contribution. It however missed the custodian's 1pm Eastern cutoff time by a few seconds and was coded ...
4
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1answer
406 views

HSA and FSA Concurrently

Our family's health insurance is through my wife's job and it is a high deductible plan. She opened and started contributing to an HSA in 2014. I started contributing to an FSA through my job in 2015 ...
2
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1answer
176 views

How to deal with IRA excess contribution without withdrawal, penalties, and fees?

I made my traditional IRA contribution for the 2013 tax year in April of 2014. I made my contribution for the 2014 tax year in April of 2015 and shortly thereafter received a notice from Principal ...
2
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2answers
9k views

Do employer matching contributions in an RRSP count towards the contribution room?

My employer gives a matching contribution for my RRSP. So let us say if I contribute $5000, the employer contributes $2000 (free money.) Does this $2000 contributed by my employer also eat up my ...
6
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1answer
1k views

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 ...
2
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1answer
172 views

What happens with an accidental excess contribution to an ISA?

I handle joint internet banking for myself and my husband. Our online account happens to have been created using my husband's personal details. While logged in under this account (as usual) I ...
8
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1answer
7k views

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 ...
4
votes
1answer
798 views

What to do if I get refunded by my 401k for being considered HCE?

If my employer gives back some of the money I put away on my 401k because I am considered a HCE, can I turn around and put it back into an IRA to avoid paying taxes and penalties that year? I am over ...
0
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1answer
231 views

Add > 5,500 (excess contribution) to Roth IRA for temporary investment?

I have an standard IRA through work and an additional Roth IRA. I split my contributions between the two accounts. I understand the max contributions to the accounts combined is 5,500 per year. A ...