Hopefully someone with experience can help me figure out if we did or did not over contribute to the 401k after-tax for 2023. We just realize this situation working on the taxes.
Detail below but the quick summary is that the after-tax contribution from Dec 2022 paycheck was processed by Fidelity 401k in Jan of 2023 which cause the total amount of 401k contribution in 2023 to be over 66k IRS limit.
So trying to figure out if we over contribute and need to withdraw excess or not.
1. Earning statement from company date 12/29/2023 with:
year to date traditional 401k = 22k
year to date after tax 401k = 37k
total 22k+37k= 59k.
2. Got a 1099-R from 401k company fidelity that we have a 42k gross distribution (from doing auto in plan Roth conversion from 401k after tax to 401k roth). The conversion was automatic and immediate so there was no gain.
At first we were confused why the 1099-R form showed 42k when the earning statement in (1) says year to date is only 37k.
It turned out that the year prior in Dec 2022, spouse got paid in 12/30/2022, there was a 5k after tax contribution to 401k.
In the Dec 2022 earning statement, this amount as listed and included in the year-to-date 401k after tax for the year 2022. However, due to the Holiday, Fidelity did not process the 5k amount to the 401k and do the roth conversion until 1/4/2023. So this amount shows up as the total contribution for the year 2023.
So when we do a sum of total contribution for the year of 2023 in Fidelity website we see the following:
traditional 401k= 22k
after tax=42k (include the amount from dec 2022 paycheck but processed in Jan 2023)
employer match=4k
total =68k which is over the 66k IRS limit.
3. The W2 we received only listed the 401k pre-tax contribution amount in box 12D. It doesn't list the after-tax contribution.
So we are not sure if we are really over contributing or not depending on which statement you look at.
If you look at the Fidelity statement, then we are over contribute due to them processing the 401k contribution amount of Dec 2022 in Jan of 2023.
if you look at the company earning statement, then we did not go over since they clearly state the year to date contribution for the year 2023 was 22k +37k)
Has anyone experience this situation and know what the correct answer is?
Thank you!
Detail below but the quick summary is that the after-tax contribution from Dec 2022 paycheck was processed by Fidelity 401k in Jan of 2023 which cause the total amount of 401k contribution in 2023 to be over 66k IRS limit.
So trying to figure out if we over contribute and need to withdraw excess or not.
1. Earning statement from company date 12/29/2023 with:
year to date traditional 401k = 22k
year to date after tax 401k = 37k
total 22k+37k= 59k.
2. Got a 1099-R from 401k company fidelity that we have a 42k gross distribution (from doing auto in plan Roth conversion from 401k after tax to 401k roth). The conversion was automatic and immediate so there was no gain.
At first we were confused why the 1099-R form showed 42k when the earning statement in (1) says year to date is only 37k.
It turned out that the year prior in Dec 2022, spouse got paid in 12/30/2022, there was a 5k after tax contribution to 401k.
In the Dec 2022 earning statement, this amount as listed and included in the year-to-date 401k after tax for the year 2022. However, due to the Holiday, Fidelity did not process the 5k amount to the 401k and do the roth conversion until 1/4/2023. So this amount shows up as the total contribution for the year 2023.
So when we do a sum of total contribution for the year of 2023 in Fidelity website we see the following:
traditional 401k= 22k
after tax=42k (include the amount from dec 2022 paycheck but processed in Jan 2023)
employer match=4k
total =68k which is over the 66k IRS limit.
3. The W2 we received only listed the 401k pre-tax contribution amount in box 12D. It doesn't list the after-tax contribution.
So we are not sure if we are really over contributing or not depending on which statement you look at.
If you look at the Fidelity statement, then we are over contribute due to them processing the 401k contribution amount of Dec 2022 in Jan of 2023.
if you look at the company earning statement, then we did not go over since they clearly state the year to date contribution for the year 2023 was 22k +37k)
Has anyone experience this situation and know what the correct answer is?
Thank you!
Statistics: Posted by Love4Learning — Sun Mar 10, 2024 10:39 pm — Replies 1 — Views 236