Refund excess 401k contributions

Jan 17 8 Comments

Has anyone over contributed their 401k amount after joining the new company and got it refunded with updated W2?

Also, specifically has anyone moved from Amazon to Microsoft or any other company where the match is better and successfully got back excess contributions refunded by Amazon with updated W2? If so can you pleaseet me know the process? Should I reach out to Amazon finance team or fidelity?

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TOP 8 Comments
  • Most likely you will need to calculate the excess contribution and contact the plan administrator you’d like to remove the excess contributions from.
    Jan 17 3
    • Amazon
      stbe

      Go to company page Amazon

      stbe
      Ethically I would say you should take it back from Microsoft. Legally I'm not sure there are any requirements
      Jan 17
    • I believe you should be fine to contact amazons 401k plan provider and they will provide you with an excess contribution removal form to complete and send back. They should also be able to explain impact to amended W2.
      Jan 17
  • New / Sales
    vIcQ35

    New Sales

    vIcQ35
    Yeah I over contributed 2 years ago switching companies. I have to contact my current company's finance team and tell them about it and get them to refund me the overage amount as a direct payment, then when I filled my taxes, I had to include the amount in my income. It's weird, because the numbers you fill out don't match your w2s. But if you get audited you'll have the paper trail.
    Jan 17 2
    • OP
      Your W2 will also be updated correct? Then o don't see a problem since you use updated W2 for filing
      Jan 17
    • New / Sales
      vIcQ35

      New Sales

      vIcQ35
      Yeah I guess it depends on when you do it. I already received my W2, that's when I found out I over contributed. And so my company just gave me a refund with some supporting form. So my W2 didn't match what was on my tax forms.
      Jan 17
  • Meta
    Metamatess

    Go to company page Meta

    Metamatess
    This is why companies ask for your previous 401k contributor so that they can stop taking when it hits max. You likely didn’t know about that.
    Feb 10 0