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!
Excess 401K Contribution
Re: Excess 401K Contribution
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
Honestly, I am surprised your HR department/payroll allowed you to over contribute. They are usually quite good at managing the cutoffs
Mike
Re: Excess 401K Contribution
No. I’m only in my mid-thirties.
I’ll reach out to them. Thanks.
Re: Excess 401K Contribution
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. 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".
Re: Excess 401K Contribution
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.
Yes, just contact them and let them handle it.
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Re: Excess 401K Contribution
Thanks. Sometimes education is expensive LOLmarkjk 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. 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".