Personal Finance (Not Investing) • 2023 401k Overcontribution

I had two employers in 2023. Both employers offered 401k's and I contributed to both.

Employer A: I maxed out the Roth 401K contributions including 'catch up' totaling $30,000. Terminated participation in the plan and rolled the entire amount over to IRA in October 2023.

Employer B: Offers participation in the TSP. The last payroll cycles of the year included a traditional contribution of $389.00, a 4% match equaling about $400, and an additional 1% employer contribution.

Since Employer A's 401k is now closed, I cannot withdraw the excess contribution of $389, get the refund, and have a new W2 generated.
Employer B can withdraw the excess contributions, but I will also forfeit the 4% match but not the 1% employer contribution.

Going through the steps to withdraw the excess contribution, which was Roth, seems too complicated for such an insignificant amount. Should I withdraw the excess funds? Should I just ignore it, report it to my accountant and pay any penalty. Does anyone know what the penalty would be? Any advice or tips would be appreciated.

Thanks, First Time Poster

Statistics: Posted by NoDice — Tue Jan 23, 2024 6:37 pm — Replies 1 — Views 150

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