Jump to content

Excess contribution to 401k got rolled over to IRA


muscleman
 Share

Recommended Posts

I used to work in Amazon and in Feb. 2016, I left Amazon so I rolled over the Amazon 401k assets to a Fidelity IRA. The Amazon 401k's admin was Vanguard.

 

Then in Feb 2017, I received two 1099R forms from Vanguard. One has distribution code G and one has distribution code 8. The one with distribution code 8 has about $2200. I called Vanguard and they said it is because I failed the "Highly Compensated Employee" rule for the 401k limit.

 

Therefore I think this $2200 is an ineligible rollover to my IRA.

 

I have the following questions:

I sent a form to my IRA admin to request correction of this. However, since the over contribution happened in 2015 but Vanguard didn't tell me until Feb. 2017, do I need to amend my 2015 taxes?

Since this happened after October 13th 2016, do I have to pay the 6% penalty on the excess contribution and earnings?

Since I already got this 1099R form from Vanguard, if I request the correction from my IRA, I think I will get another 1099R form from the IRA admin, so will I be double taxed?

Lastly, if I will be double taxed on it anyway, should I just FORGET about making a request to Fidelity to withdraw this excess? I saw someone recommended doing that for a similar situation here: https://www.bogleheads.org/forum/viewtopic.php?t=163635

 

 

 

Yours sincerely,

MM

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...