Accidentally over contributed to 401k

Cisco
JQZF19V

Go to company page Cisco

JQZF19V
May 27, 2021 7 Comments

I recently started a new job. Few months ago, I intended to change my 401k contribution to a high percentage only for a couple of pay cycles but unfortunately forgot to change it back. I just realized I hit my $19.5k personal limit even before I quit my old job.

My new employer has a 100% match up to a certain amount which is substantial. Is there anything I can do to get the employer match?
If I do not notify my current employer that I’ve hit the limit and somehow get the match, will I have to return the employer contribution when my excess contribution is taxed and returned to me before the tax deadline?

Both accounts are handled by Fidelity. I really don’t want to lose thousands of dollars because of a stupid mistake. Please help!!!

TC 240k

#personalfinance #401k

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TOP 7 Comments
  • Contact your benefits dept asap
    May 27, 2021 1
    • Investment Bank
      Glinda

      Investment Bank

      PRE
      HP
      Glinda
      You should make an adjustment before the end of the tax year. It is not worth the hassle to go over.
      May 27, 2021
  • Google
    pichaiwala

    Go to company page Google

    pichaiwala
    I believe you can call previous company benefits dept and remove those contributions (you’ll have to pay tax on that amount of course)
    May 27, 2021 0
  • Cisco
    JQZF19V

    Go to company page Cisco

    JQZF19V
    OP
    I spoke to Fidelity and was told I have the option of intentionally over contributing to 401k to get the employer match. Then early next year, I can fill out a form to specifically ask my former employer to return the excess 401k contribution.
    May 27, 2021 0
  • PwC
    bwkW41

    Go to company page PwC

    bwkW41
    The other may be to do post-tax contributions and the company could match off of that
    May 27, 2021 0
  • OP you needn’t worry. The overcontribution amount will be credited back to you in the form of donation towards patriotic investment in Israeli self defense force armament.
    May 27, 2021 1