AboutDavid M Iannopollo Expertise I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances.
Experience I have over 20 years experience in the business and financial world.
Question I changed jobs this year. At my 1st employer, I contributed $13,000 (in 2009) to a Roth 401k. My current employer does not offer a Roth 401k, so I have been contributing to a traditional 401k. So far, I've contributed $5,000. I know that I am over the limit of $16,500, and have stopped my 401k contributions for the remainder of the year. What do I need to do to fix this??? Are there any penalties for doing this?
I assume the IRS will not allow me to over contribute.
thanks,
Answer Hi Steve,
Yes, you are correct in assuming the IRS won't allow you to over contribute! Fortunately you've caught it before the end of the year so it shouldn't be too much of a problem. You'll be able to have a check issued to you in the amount that you over contributed minus any taxes due. You can take the overage out of either account. Contact your payroll rep and have them ask the 401k company to issue you a check. Here is a link with more info:
