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Old 02-14-2012, 09:43 AM
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Unhappy Excess 401k Contributions

Had 401K with company A from January to July, 2011. Contributed maximum of $16,500 to 401k at company A.

Worked for company B from July to December, 2011. Contributed a miminal amount to get matching contribution at company B.

Want to withdraw excess contributions from company A, to keep the match from company B. Company A has directed their plan not to allow the withdrawal from the plan with company B.

Can you choose the plan you want to withdraw excessive contributions from, or do you have to withdraw from the last plan contributed to?


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Found a document on the IRS website that states this:

Treatment of excess deferrals. If the total of a plan participant’s elective deferrals is more than the limit, a plan participant can have the difference (called an excess deferral) returned to the participant from any of the plans that permit these distributions. A plan participant must notify the plan by April 15 of the following year of the amount to be paid from the plan. The plan must then pay the participant that amount plus allocable earnings by April 15 of the year following the year in which the excess occurred.

Looks like I just need to call the IRS to verify.

Last edited by notben : 02-14-2012 at 11:41 AM. Reason: new information

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