Excess 401K Contribution

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Topic Author
BV3273
Posts: 909
Joined: Mon Oct 19, 2015 7:20 pm

Excess 401K Contribution

Post by BV3273 »

Hello All,

I overshot the runway a bit with my 401k contributions this year and just realized that my last contribution put me about $336 over my annual limit of $19,500 (obviously a good problem to have since I contributed my max but a problem all the same). My compensation is variable from month to month and I’ve been quite busy so I have no one to blame but myself for this. Based on what I read online I think I need to contact my HR department to take care of the excess contribution. Is that correct? My plan moving forward is to make my 401k contributions 0% for my last 2 paychecks this year so I don’t continue to add to the excess contribution. This is kind of a bummer since I’ll be missing out on a 6% company match (probably a few grand all in). Is there anyway around this? Or am I basically stuck?

Thanks in advance!
fabdog
Posts: 2543
Joined: Wed Jan 16, 2013 12:59 pm
Location: Williamsburg VA

Re: Excess 401K Contribution

Post by fabdog »

yes, start with your HR department. Are you eligible for catch up contributions?

Honestly, I am surprised your HR department/payroll allowed you to over contribute. They are usually quite good at managing the cutoffs

Mike
Topic Author
BV3273
Posts: 909
Joined: Mon Oct 19, 2015 7:20 pm

Re: Excess 401K Contribution

Post by BV3273 »

fabdog wrote: Sun Dec 05, 2021 8:04 am yes, start with your HR department. Are you eligible for catch up contributions?

Honestly, I am surprised your HR department/payroll allowed you to over contribute. They are usually quite good at managing the cutoffs

Mike
No. I’m only in my mid-thirties.

I’ll reach out to them. Thanks.
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markjk
Posts: 540
Joined: Wed Oct 07, 2020 6:01 am

Re: Excess 401K Contribution

Post by markjk »

Yeah, I'd contact HR. I almost went over two years ago and stopped contributing entirely a few weeks early. Then I realized I was missing out on the company match. :oops: This type of stuff happens. I don't think there is anything you can do about the last two paychecks and company match if you already hit your limit but another good question to HR since you will contact them anyway. Just chalk it up to the cost of "education".
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retiredjg
Posts: 53989
Joined: Thu Jan 10, 2008 11:56 am

Re: Excess 401K Contribution

Post by retiredjg »

I'm surprised they actually allowed the excess contribution unless you have had more than one employer this year.

Yes, just contact them and let them handle it.
Topic Author
BV3273
Posts: 909
Joined: Mon Oct 19, 2015 7:20 pm

Re: Excess 401K Contribution

Post by BV3273 »

markjk wrote: Sun Dec 05, 2021 8:26 am Yeah, I'd contact HR. I almost went over two years ago and stopped contributing entirely a few weeks early. Then I realized I was missing out on the company match. :oops: This type of stuff happens. I don't think there is anything you can do about the last two paychecks and company match if you already hit your limit but another good question to HR since you will contact them anyway. Just chalk it up to the cost of "education".
Thanks. Sometimes education is expensive LOL
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