<jdinla[at]gmail.com> wrote:

- quote -

That's it. This is also covered in Pub 525.

--
Phil Marti
Clarksburg, MD

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"Phil Marti" <prm20...[at]verizon.net> wrote:
- quote -

Thanks Phil, I did not realize that was the case for point
1, hardship withdrawal.

I've read that the plans may not refund the excess
contribution, though I find it odd that it would be left to
their discretion. But if you don't mind elaborating on the
worst-case scenario, I think it may still be worthwhile to
me. I get 50% matching on what I contribute, which is more
than the tax I'd pay (even if I don't get the refund). What
happens next though, is my excess contribution along with
its matching dollars considered tax-deferred, all along with
any interest it earns? Beyond the double taxation scenario,
am I not liable in any way for exceeding the limit?

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" <NoSuchPerson[at]bigfoot.com> writes:

- quote -

No, it's not. The employee deferral contribution
is aggregated across all employers. So the total
401(k) contribution you can make in a year, across
all employers is $15,000 in 2006, $15,500 in 2007
(leaving aside the catch-up contribution).

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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"rlsusenet[at]NOSPAMPUHLEEZschnapp.org" <NoSuchPerson[at]bigfoot.com> wrote:

- quote -

This is incorrect. See IRS Publication 525.

--
Phil Marti
Clarksburg, MD

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rlsusenet[at]NOSPAMPUHLEEZschnapp.org wrote:

- quote -

Nope. I am certain the OP's issue is real, and the
individual limit is calendar, not per employer. It would be
a neat trick for those who hold two jobs, however it's
simply not true.

JOE

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jdinla[at]gmail.com wrote:

- quote -

I think the 401k contribution limit is per-employer. I don't
think you would be over the limit if you contributed another
$15k at your second job, assuming you can afford to.

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<jdinla[at]gmail.com> wrote:

- quote -

That wouldn't change the fact that you've already maxed your
contribution for the year.

- quote -

Yes, but be aware that neither plan is required to refund
the excess. Your worst-case scenario here would be that you
have an excess deferral that will get taxed twice--once for
2007 and again when you withdraw in retirement.

--
Phil Marti
Clarksburg, MD

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I've done some bad planning on my 401k. I am changing jobs
and contributing $6000 was enough to get maximum employer
match ($3000) from my current employer, but I contributed
$15,000, close to the cap.

I am now starting a new job that will contribute 50% for
$8000 of my 401k contributions, but I have no room to
contribute. Is there any way to make this happen?

1- Can I take a hardship withdrawal, or do I need to show
genuine hardship? I know there is a 10% penalty, but 50%
matching would make up for it, and I'd get back to the cap
401k contribution by the end of the year, so the income tax
on the withdrawal would be compensated.

2- If I contribute $8000 ignoring my previous 401k, I would
be over contributing by $7,500. As I understand, the excess
would have to be withdrawn and taxed, and that's fine by me,
as long as it's taken from the old 401k plan or otherwise
stops the matching funds from being touched. Is that an
option?

Thanks!

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >