Error in Roth 401(k) Cost Basis

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almeida
Posts: 49
Joined: Sat Sep 08, 2012 4:09 pm

Error in Roth 401(k) Cost Basis

Post by almeida » Sun Apr 08, 2018 11:12 am

I'm doing a rollover my previous employer's 401(k) to my current plan. In the process, I learned that there was a mixup with a transaction in 2012 that has affected my cost basis. The short version is that the employer did not cap 401(k) contributions, so I accidentally went over the limit. I noticed the error, notified payroll, and they undid the excess, all before the end of 2012.

The problem is that records differ on whether the excess came out of my Traditional 401(k) or my Roth 401(k). The employer's records (e.g., paystubs and W-2) show that the excess was taken out of my Traditional 401(k). The plan administrator's records, however, show the excess came out of my Roth 401(k).

I filed my 2012 taxes based on the employer's records. The rollover forms reflect the administrator's records.

If the employer is right, then my rollover form is wrong. If the administrator is right, then my 2012 taxes are wrong. The difference is only about $10, on a total cost basis of around $1,000.

What's the right course of action? Try to convince the administrator that their records are wrong?

almeida
Posts: 49
Joined: Sat Sep 08, 2012 4:09 pm

Re: Error in Roth 401(k) Cost Basis

Post by almeida » Mon Apr 16, 2018 12:12 pm

The plan administrator says they can't do anything about it. They said I should ask the employer for a new W-2. This seems like a lot of fuss for $10 from over five years ago.

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