This is for 2024. My understand is annual limit is 23k across any and all 401ks.
I have two jobs. A full time job and a small part time one essentially (I was previously full time here at the second job, but then switched to part time).
I've made a bunch of calls after realizing the overcontribution, after I went through a lot of financial stuff on my end.
For 2024, I hit the 23k limit at my main job
They automatically stopped contributions once I hit the limit.
The second job I contributed $113 dollars for 2024.
So I'm over $113.
I googled it and people on reddit say I need to ask for a correction (there's a term for it I can't.
Main job and 401k (fidelity) is saying I didn't go over. I hit the limit and nothing they can do.
Second job and 401k (empower) are saying I didn't hit the limit, only shows $113. I explain ive gone over between the two jobs combined. The representative says they don't see me going over on their end, and blow me off and tell me to talk to fidelity. Second job/empower says they can't do anything unless they're notified by irs that I've gone over.
My reddit searches indicated I should be able to call, tell them I've gone over between the two jobs and get a corrective refund…. But this isn't the reality I'm in. Nobody wants to do anything it seems like unless directed by the irs.
At this point… What do I do? Hope it doesn't get caught? Or if it does, the penalty on $100 or so can't be much… Take the hit? Wait for the irs to "notify" the 401k (fidelity, or empower, or both)… I feel like this won't happen lol.
First job says I hit my limit, nothing to do. Second job says I haven't hit my limit, nothing to do. Ive explained my situation with both jobs and they are aware, but that's what they're telling me. Empower says they won't do anything unless notified by irs – according to representative… Who probably doesn't know what they're talking about.
Please advise.
Thanks
Posted by Confident-Fun-6037
4 Comments
If it’s $100 and shows up on your W-2, just take the hit or do the correction at tax time. Such an immaterial amount.
Your good. Maybe a minor penalty on your tax return – it’ll be fine.
Lol it’s 100 dollars nobody cares, probably not even the irs
The deadline to get a corrective distribution for 2024 was 4/15/2025.
At this point, just leave it be. People confuse 401k plans and IRAs. An IRA would have a 6% excess contribution penalty, a 401k does not have anything equivalent to that. The only downside is that you will have to pay tax on the $113 when you withdraw it after you retire.
And you are also supposed to put $113 extra income on your 2024 Form 1040 line 1h. Even if you had taken it out, you were supposed to do this. Most tax programs will do it automatically for you, with the notable exception of Turbotax.
As others have said $113 is too small to worry about. Just forget it.