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#1
02-11-2006, 07:05 PM
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 Re: Contributed over 14K in 401(k) - how to record on taxes? "Chu" <chunews[at]gmail.com> wrote: - quote - > Between two jobs this year, I accidentally overcontributed
by this year seems you might mean 2005> to my 401(k) plans to the tune of approximately $500. (ie: > 10,000 in plan A with employer A and 4,500 in plan B with > employer B) > How to I compensate for this? I am using Turbotax which > simply tells me to lookup irs publication 525...which > doesn't really help me. > So, how do I record this overcontribution? consider contacting the 401(k) plan administrator, and asking if you can recharacterize the $500 as a 2006 contribution << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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02-11-2006, 06:45 PM
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| Re: Contributed over 14K in 401(k) - how to record on taxes? "Chu" <chunews[at]gmail.com> writes: - quote - > Between two jobs this year, I accidentally overcontributed
Two choices:> to my 401(k) plans to the tune of approximately $500. (ie: > 10,000 in plan A with employer A and 4,500 in plan B with > employer B) (1) Get one of the employers to issue a corrective distribution. You'll show it on your return and will pay tax on it (since it was already deducted from wages shown on your W-2). (2) For an overcontrib of only $500, consider just doing nothing. In this case, you add the $500 into the Wages box of your return, and that's it. There is no penalty or anything. Or, more precisely, the "penalty" is that even though you paid tax on that $500 now, you'll pay tax on it again when you ultimately take it from the 401(k). -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
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#-1
02-09-2006, 04:32 AM
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| Contributed over 14K in 401(k) - how to record on taxes? Between two jobs this year, I accidentally overcontributed to my 401(k) plans to the tune of approximately $500. (ie: 10,000 in plan A with employer A and 4,500 in plan B with employer B) How to I compensate for this? I am using Turbotax which simply tells me to lookup irs publication 525...which doesn't really help me. So, how do I record this overcontribution? << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== > |
| Tags |
| 14k, 401k, contributed, record, taxes |
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