Hey folks,
According to my 401k plan administrator, I overcontributed to my 401k plan this year. They didn't send a notice or anything, but the balance is like a couple hundred dollars above 19.5k. I stopped it there. Since it's only like $200, it's a fairly trivial penalty.
If I look at my paystubs from my employer, the contribution amounts for 2021 do not exceed 19.5k.
The discrepancy is due to my 12/31/20 paycheck's contribution not appearing in my retirement plan until 1/4/21. Their online portal tallies it for 2021. It's "my k plan" by ADP and 1/4/21 is the "activity date."
The specific reason this matters is because I have since left the job and want to roll over my 401k into my IRA, for simplicity. I read the terms of the rollover and it said overcontributions aren't eligible (I believe). In any case, I am just trying to avoid any annoyances or penalties in the rollover or when I do my 2021 taxes.
I'll probably ask ADP as well, but I am seeking a "2nd opinion" in the expertise of reddit. I am not confident I will get a tax pro in ADP's support for such a nuanced question.
Submitted September 25, 2021 at 10:12PM by aspillz https://ift.tt/2Y3Rx6V
