[USER]

Hello, I need some help understanding the IRS penalty for 401k over contribution.

I left an old employer and now with a new employer and just noticed I contributed 1k over the limit. I was wondering if I can just leave this extra 1k, claim it as extra income when I file tax and is the penalty for doing this only double taxation?

I keep seeing a yearly 6% penalty on Google, but I don’t see this 6% on the IRS website. I would rather leave the 1k and not have to deal with my pervious employer.

Wanted to add some clarification.
Plan is through Fidelity.

401K plan states that I would need to work with perivous employer to remove as they would not let Fidelity process the removal.

Pervious employer is really difficult to work with and I would prefer to leave the extra and pay tax on it twice as long as there are no other issue I don’t understand.

Thanks!

[Robert]

Just trying to understand what you’re asking but you contributed more than 27k?

[Elizabeth]

Have the excess removed from your current employer’s plan. Then you don’t have to deal with your previous employer.

[Philip]

Withdraw of excess form with the 401k program. You don’t want to just leave it there.

[Author]

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