Need help with my 401K situation
So IRS has pre-tax 401k limit of $19000. I joined Google this year around May. Both Google and my previous employer do 50% match of pre-tax/Roth 401K. I have contributed $12,000 pre-tax with my previous employer, but it only matched $8000 of that (i.e. $4000). I am now able to contribute only the rest $7000 at Google. Which means no match on the $4000 over-contribution I did at my previous job, i.e. $2000 down the drain. How can I fix it ? Is it possible for me to withdraw $4000 from my previous employer's 401K account so that I can contribute that at Google ? Will IRS penalize if I do that ? (I haven't filed the taxes for this year, so guess not ?). Please help !
I have the same issue except I already contributed the full 19K amount. Is there some way I can withdraw and re-contribute at my new company?
I think if you contribute X then withdraw X, you have still contributed X for that year in the eyes of the IRS and you would owe tax plus penalties on the withdrawal.
Yes this is correct
No. It is not.
I was in the same shoes. I over contributed at google, then try withdraw from my old employer. I was told that I couldn’t withdraw b/c the plan is not active any more. So I ended up withdrawing the overcontributed fund from google. Sad.
Anyone successfully did it? In the same shoe and likely will get same response from old company saying the account is not active ...
Over-contribute at new employer. Put in $19k if you can. Withdraw excess contribution before Mar 15 next year. See IRS Form 1099-R
Yeah, if this is legal, better to plan to withdraw the full 12k, not just 4k, so you can get the full Google match.
So you mean I need to withdraw excess contribution from my old employer ‘s 401k ? And how difficult is that process ? Is it worth doing that to save $2k ?