jkdoll2 Posted March 17, 2009 Posted March 17, 2009 Owner (partnership) was contributing each payroll to her 401(k) deferrals. At the end of the year her contribuiton was $20,500.00 She just got her taxes done and the accountant says she over contributed and needs to get the money out of the plan. Her compensation ended up being only $1,000. I dont know why the accountant didnt use the deferrals as part of a deduction on her taxes. Would you count this as an excess contribution and she has until 4/15/09 to get the money out?
K2retire Posted March 18, 2009 Posted March 18, 2009 It sounds like she has exceeded both the 402(g) limit and the 415 limit for the year. I don't see many of those, so I don't recall the deadlines for correcting them.
BG5150 Posted March 18, 2009 Posted March 18, 2009 You have a 415 excess. Correct through EPCRS. So, it's 415 first, then 402(g)? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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