I was recently notified of a corrective withdrawal from my 403(b) related to a contribution in 2019. This was apparently due to my date of hire and my employer switching from using calendar year to fiscal year to define contribution period. This in turn limited my earned income that could be put toward 403(b) in 2019.
Per the notice, I’ll be receiving a check with the ‘excess distribution,’ and the distribution will be reported on a 2020 1099-R.
My spouse and I are in process of 2020 and 2021 backdoor Roth contributions. I don’t anticipate this will pose an issue as the money isn’t being distributed to an IRA but would greatly appreciate any insight into unforeseen implications.
Thanks in advance!