Changed job 3 times this year, excess contributions issues?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
loklav
Posts: 126
Joined: Fri Nov 10, 2017 11:39 pm

Changed job 3 times this year, excess contributions issues?

Post by loklav » Mon Dec 02, 2019 4:43 pm

Hi all,

I changed jobs 3 times this year. I was careful not to overcontribute to my 401k but I suppose that there are other contributions with a similar issue, like OASDI for example...?
Which ones should I pay attention too and what should I do to get any refund?

Thanks

HomeStretch
Posts: 2894
Joined: Thu Dec 27, 2018 3:06 pm

Re: Changed job 3 times this year, excess contributions issues?

Post by HomeStretch » Mon Dec 02, 2019 4:52 pm

Each employer is required to withhold FICA. If your FICA wages exceed $132,900 for 2019, then you may have excess Social Security tax withheld @ 6.2%. Your excess withholding will be calculated as part of your 2019 Federal tax return. It will either reduce the taxes you pay with your return or increase your refund.

Depending on your salary level, the three employers may not have withheld additional Medicare tax of 0.9% (above the 1.45% rate) on Medicare wages > $200,000. That too will get tried up through your 2019 return.

Be careful of any other benefit over contributions like HSA.

Post Reply