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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: jtsaratoga who wrote (1969)3/10/1999 9:55:00 AM
From: Colin Cody  Read Replies (1) | Respond to of 5810
 
JT, I know enough in this area to tell you the rules i.e. Do not over contribute, but I do not know about when a taxpayer does not follow the rules, exactly what happens.

If you over-contribute there is a 10% annual penalty ($100 in your case). If it was me I'd have $1,000 taken out retroactively and have my W-2 reflect that. But rely on your 401K administrator.

The people you spoke with might be clueless, but 401K have a HUGE burden of compliance, so your company likely hired that job out to a firm of experts. THEY will know the action to take!

Colin



To: jtsaratoga who wrote (1969)3/10/1999 10:06:00 AM
From: mod  Respond to of 5810
 
I don't know if the same rules apply to 401ks, but if you overcontribute to an IRA, you can withdraw the overcontribution (and its earnings) by the due date of your tax return, without penalty. You then file as if you had never made the contribution.


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