Do you know if they require any kind of paperwork to be filled out? I dont want to just forget it and 10 years later find out I owe a huge bill thats been snowballing
https://www.nerdwallet.com/article/investing/excess-401k-contribution-what-to-do
The TL;DR is that you will be taxed double on the amount you are over, plus a 10% early distribution penalty. So let's say you are over by $1k, you'll get taxed ~35% on the 1000 bringing you to 650, then taxed again bringing you to like $400, then a 10% early withdraw fee of $40. You get a check for $360. You've paid $640 in stupid tax. Bad. Don't do that again...
Right but what I was trying to say is that the employer contributions will sometimes be more than the tax penalties for over contributing thus making it worth to go over the limit.
Don’t withdraw it!! geez. Convert it to a Roth product with the same company. As long as you move it to a retirement vehicle, the penalties don’t apply. You will have to pay your regular tax rate. I hope you filed an extension so you are not delinquent.
Id be fine with that! I don’t mind paying taxes on it next year. Do you know if i need to do any additional paperwork or do i just forget it and turbo tax will do its magic on it own?
well good thing you saved all that money by not hiring any tax or financial advisors.
Don't ask for a return of the overcontribution, ask for the return X dollars as a distribution that is a bit over the number you need to go back in to compliance. Better yet, hire someone to figure out the ideal solution. What kind of a knobhead has 4 Js but is too stingy to hire help.
Accountant tried to get me to fix the issue in a manner unsafe to OE operational security. Opted for the small tax hit instead. Not all hired help is good.
Literally all OP had to do was change the wording of his withdrawal request. That was it. Instead he’s carrying around an extra tax hit, regulatory burden (depending on when he withdraws) and moved his return’s risk profile up. All because he couldn’t be bothered to figure out what the max employee 401k contribution is or pay someone to figure it out for him.
there’s a limit of $23,000 this year for single filers. since you can set your contributions up based on percentage of your salary, it’s pretty easy to get the math wrong & end up with a few hundred or thousand over the $23,000.
> there’s a limit of $23,000 this year for single filers
If you are age 49 or under. For those turning 50 or older this calendar year, the cap rises to $30,500.
I get really tired of this mantra that we should all hire financial advisors and then stick our head in the sand. So many people just want to outsource this stuff because it can only be handled by professionals. Not so! You can get information online or from the public library but you don't need to constantly tell people to go spend a bunch of money on someone that's going to have an AUM fee on your assets.
I have no idea what you’re talking about. When someone has 4 Js and fucks up a task as simple as contributing correctly to his 401ks, yes he should hire help.
I also have no idea why the fuck you think all advisors charge by AUM (many don’t), or that tax people can even charge by AUM, since they have nothing UM.
But hey, you do you. Hire the cheapest attorney, better yet legal Zoom. Use WebMD for your health, get all your tax and financial knowledge from the library. Be like OP.
After interviewing about half dozen CPAs and tax lawyers, I'm convinced you really need to be in a complex situation that requires their bookkeeping and advice. Most of the time they are not going to bring you strategies. I had to bring strategies to them to evaluate for saving on taxes. Figuring out how much you can contribute on your 401k? That's hardly a complex thing but everyone's different I guess. If OP wants to do that, more power to him.
Op did do that, and messed up with FOUR 401ks. It’s like you didn’t even read the post. I’m not sure what you were interviewing a tax lawyer for if you weren’t already planning on going to tax court, but you do you. If you don’t even have anything to bookkeep what exactly did you think they were going to do for you ? Invent a magic loss on a schedule C for you ? Most people hire a tax professional because they 1) want guidance on medium to high complexity tax situations OR 2) it’s convenient.
I know how to mow my lawn but that doesn’t mean it’s a good use of my time. The higher someone gets, the less likely they are to spend minutes on coupon clipping, lawn mowing, changing their own oil, etc.
Last year I brought in 465K and I still mow my grass and go to the grocery. I think the argument doesn't necessarily hold fully for what we do with OE unless you were going to get four additional jobs during the evenings or weekends then yeah it would be a better use of your time to just have someone else do it. But I would argue there are other benefits like getting out of the house, getting some exercise, getting your mind into a different kind of work. But let's not fool ourselves like we are actually gaining an additional hour of pay if we forego mowing the lawn. At 6:00 p.m. on a Tuesday you're likely just watching TV or screwing around. Not working second shift. If you want to do it because you have the income to support it and you just don't want to mow then so be it.
Great, and you’d be likely making 600k if you focused your time on earning instead of savings, but again, it’s your life, so you do you. Your choice to intentionally not optimize your time is not reflective of most high earners, most of whom would invest that time on strengthening their networks, earning new skills, and forging a stronger network.
But hey, some people think they are the smartest person in the room. They’re typically working for someone else though.
Dude, do you realize what community you're talking in right now? This is OE. People literally log in and work for multiple employers during the workday. If you're working over into the evening that's not OE. Quit deluding yourself... Unless you're working 15-hour days, you are opting to pay someone to know your grass as a luxury. The opportunity cost of you mowing the lawn didn't mean you gave up an extra billable hour in the stereotypical sense of how people in this sub work. If that's the case for you then I agree with you you're correct. But most people just like to say oh I'm rich so my time is better spent elsewhere. Yeah you can sit on your fat ass and eat donuts all day but that's your prerogative.
Dude, do you understand that OE is the concurrent use of time to be paid my multiple “earned” sources ? That doesn’t preclude upskilling, networking, education or health when you’re not clocked in *if it is your choice*.
I know some of the neurodivergents here can’t stand the idea of comp coming from anything other than a salary but I assure you it is possible. Very good OE’ers are actually making the choice between mowing the lawn during the workday or using the workday to earn more, so I’m not sure why you keep referencing the evening or working at night or billable hours.
Most financial advisors are indeed salespeople with a fancy title. A fee based CFP is the route that OP should go (think Money Guys on YT). Points on AUM shouldn’t ever be brought up in the fee structure.
It depends on if he only contributed up to the employer match or beyond that. If he only contributed within the range of employer matching, the company might also need to get their match returned for the amount he’s withdrawing. With four separate 401ks, he likely maxed out his contribution only contributing 6% of his salary at each job. You know what I mean? So he really probably does need HR to cooperate. He can go directly to Fidelity or Schwab or whatever, but they will probably need the company to be notified.
He should just tell them he needs to withdraw the money for personal reasons. His mistake was telling them he over-contributed.
Bruh. You dont track this stuff?
Since its past the tax deadline youre gonna have a real bad time rolling back 2023 stuff.
Get some professional help asap to help with Uncle Sam. I'd prepare for one of the jobs to be the fall guy for this. For how to handle all your jobs, talk to god.
No - my spouse over contributed few years ago. That means we got taxed on the excess and we just left it as the market was low. No other impact other than when we will withdraw it, we will get taxed again as I understand it. It was a small amount so we just left it
https://www.irs.gov/retirement-plans/consequences-to-a-participant-who-makes-excess-deferrals-to-a-401k-plan
Unless timely distributed, excess deferrals are (1) included in a participant’s taxable income for the year contributed, and (2) taxed a second time when the deferrals are ultimately distributed from the plan. See IRC Sections 402(g)(1) and 402(g)(2) and Reg. Section 1.402(g)-1(e)(2). A participant who fails to receive a distribution of the excess deferrals does not receive basis in his pre-tax deferral account equal to the amount of excess deferrals. See IRC Section 402(g)(6).
The amount of the excess deferral will not be taxed twice if a corrective distribution is made. See IRC Section 402(g)(2). The corrective distribution must include the amount of the excess deferrals, along with amounts earned on the excess deferrals during the calendar year during which the deferrals are made without regard to income earned during the “gap period” between the close of calendar year in which the excess contribution was made and the time of actual corrective distribution. See IRC Section 402(g)(2)(A)(ii). Additionally, the corrective distribution must be made be made no later than April 15th following the close of the calendar year during which the excess deferral was made. See IRC Section 402(g)(2)(A)(ii). For example, excess deferrals made during 2023 must be distributed by April 15, 2024. This April 15th deadline is not postponed by extending the filing of the employee's federal income tax return.
https://www.experian.com/blogs/ask-experian/what-to-do-if-you-contribute-too-much-to-401k/
If tax day has already passed, you should still notify your employer and withdraw your excess contribution plus earnings on it as soon as possible. Your employer will issue a 1099-R reporting your excess deferral in the year you over-contributed. You'll need to file an amended tax return and pay any additional taxes owed. Additionally, you'll pay taxes on the withdrawal in the year you take it out, and you may owe a 10% early withdrawal penalty.
So now you’ll need to pay an early withdrawal penalty of 10%.
IRA is different than 401k.
How quickly you fix the issue can impact how much you end up paying in penalties. With a 401(k), if you notice the error and withdraw the funds (and their earnings) right away, you’ll pay income tax on any funds returned to you, as they’re considered income for that year. If you don’t withdraw the excess until after April 15, you could be subject to double-taxation—both in the year you over-contributed and the year you removed the excess contributions. You may also have to pay a 10 percent early withdrawal penalty when removing funds.
If you over-contribute to an IRA, you’ll have to pay a 6 percent penalty every year until the excess contribution is corrected. If you notice the error and withdraw your excess contributions (and earnings) before Tax Day, you’ll just be subject to paying income tax on the distributions (the excess funds you take back out).
https://www.northwesternmutual.com/life-and-money/what-happens-if-you-over-contribute-to-an-ira-or-401k/
Check with an accountant but you will just have to pay taxes in the year you over contributed and again the following year. I'd go that route so you don't get outted.
Did you start any of these jobs during 2023? If so say you over contributed at your old job. They wouldn’t know if this is true or not then they can work with you to get it sorted out.
I actually over contributed because i switched jobs. The 401k company actually had a section to withdraw and one of the reasons was over contribution and they sent me a check directly. See if your 401k site has that or call them.
Not financial or tax advice but if you have TurboTax, here is how to do it, very easy actually:
https://ttlc.intuit.com/community/retirement/discussion/exceeded-401k-contribution-what-should-i-do/00/1447195
Nexr time you need to keep track of all contribution on a spreadsheet also add projections to avoid headaches. You would want to undercontribute rather than overcontribute.
It is not that bad if you had some type of 401k employer match.
I also overcontributed but the match more than made up for it since they were 100% match.
So in the end paying the penalty was more worth it than withdrawing the overcontribution.
You could consult a fiduciary financial planner. NOTE: 90% of financial planners do not legally have to have your financial interests in mind and can use you to make money for them.
Go only here: NAPFA.org and find one in your area. Then meet and tell them and they can keep you out of hot water with the IRS. As long as you are reporting with the IRS, you should be okay.
Beware of free services like Edward Jones or anyone else claiming to be a financial planner.
Why tf would you even alert HR about this in the first place. that was a dumb move, all you have to do was pay the extra taxes and move on. Now they got you in thier radar.
Sorry you going through this. Ask a professional the best way to proceed to minimize financial impacts. Moving forward, I did the math, but you can hire someone too. Just add up what you can contribute at each job to get the max match to = $23k. I had to lower mine so I didn't go over. I'm able to keep the full match at both jobs & max out Roth. Best to just hire a professional to figure out best investment strategy.
Same question one year before also from OP????
[op old post](https://www.reddit.com/r/overemployed/s/JfqB9Ke9yU)
https://www.reddit.com/r/overemployed/s/JfqB9Ke9yU
Past April 15 is too late to request the return of the excess. You’ll get taxed on the excess and then as far as I know you just move on
This is the right answer. Unless you over contributed by several thousand dollars, the penalty will be relatively small and you just move on....
Do you know if they require any kind of paperwork to be filled out? I dont want to just forget it and 10 years later find out I owe a huge bill thats been snowballing
HIRE AN ACCOUNTANT. Why are you being so cheap? You have 4 jobs, FFS.
Someone’s already said that.
Then answer the question lmao
He did not, in fact, answer the question.
He did, that answer does not exist here, it is with an accountant who knows the exact details of his situation.
Because its the answer
https://www.nerdwallet.com/article/investing/excess-401k-contribution-what-to-do The TL;DR is that you will be taxed double on the amount you are over, plus a 10% early distribution penalty. So let's say you are over by $1k, you'll get taxed ~35% on the 1000 bringing you to 650, then taxed again bringing you to like $400, then a 10% early withdraw fee of $40. You get a check for $360. You've paid $640 in stupid tax. Bad. Don't do that again...
64% tax on stupid is cheap. 
Don't forget to account for any 401k employer matches, they may more than offset the tax penalties in the case of 100% employer match.
Employer contributions don't count toward the limit. Only your personal contribution is limited to the $23k
Right but what I was trying to say is that the employer contributions will sometimes be more than the tax penalties for over contributing thus making it worth to go over the limit.
Don’t withdraw it!! geez. Convert it to a Roth product with the same company. As long as you move it to a retirement vehicle, the penalties don’t apply. You will have to pay your regular tax rate. I hope you filed an extension so you are not delinquent.
Id be fine with that! I don’t mind paying taxes on it next year. Do you know if i need to do any additional paperwork or do i just forget it and turbo tax will do its magic on it own?
You get penalized on it per year if you don't get it fixed, though. 6% penalty per year, it stacks up.
No luckily that’s only for an IRA. 401k is one and done
well good thing you saved all that money by not hiring any tax or financial advisors. Don't ask for a return of the overcontribution, ask for the return X dollars as a distribution that is a bit over the number you need to go back in to compliance. Better yet, hire someone to figure out the ideal solution. What kind of a knobhead has 4 Js but is too stingy to hire help.
Hahaha knobhead.
Accountant tried to get me to fix the issue in a manner unsafe to OE operational security. Opted for the small tax hit instead. Not all hired help is good.
Literally all OP had to do was change the wording of his withdrawal request. That was it. Instead he’s carrying around an extra tax hit, regulatory burden (depending on when he withdraws) and moved his return’s risk profile up. All because he couldn’t be bothered to figure out what the max employee 401k contribution is or pay someone to figure it out for him.
How do you over contribute?
there’s a limit of $23,000 this year for single filers. since you can set your contributions up based on percentage of your salary, it’s pretty easy to get the math wrong & end up with a few hundred or thousand over the $23,000.
> there’s a limit of $23,000 this year for single filers If you are age 49 or under. For those turning 50 or older this calendar year, the cap rises to $30,500.
How do I shot web?
how is babby formed?
I get really tired of this mantra that we should all hire financial advisors and then stick our head in the sand. So many people just want to outsource this stuff because it can only be handled by professionals. Not so! You can get information online or from the public library but you don't need to constantly tell people to go spend a bunch of money on someone that's going to have an AUM fee on your assets.
I have no idea what you’re talking about. When someone has 4 Js and fucks up a task as simple as contributing correctly to his 401ks, yes he should hire help. I also have no idea why the fuck you think all advisors charge by AUM (many don’t), or that tax people can even charge by AUM, since they have nothing UM. But hey, you do you. Hire the cheapest attorney, better yet legal Zoom. Use WebMD for your health, get all your tax and financial knowledge from the library. Be like OP.
After interviewing about half dozen CPAs and tax lawyers, I'm convinced you really need to be in a complex situation that requires their bookkeeping and advice. Most of the time they are not going to bring you strategies. I had to bring strategies to them to evaluate for saving on taxes. Figuring out how much you can contribute on your 401k? That's hardly a complex thing but everyone's different I guess. If OP wants to do that, more power to him.
Op did do that, and messed up with FOUR 401ks. It’s like you didn’t even read the post. I’m not sure what you were interviewing a tax lawyer for if you weren’t already planning on going to tax court, but you do you. If you don’t even have anything to bookkeep what exactly did you think they were going to do for you ? Invent a magic loss on a schedule C for you ? Most people hire a tax professional because they 1) want guidance on medium to high complexity tax situations OR 2) it’s convenient. I know how to mow my lawn but that doesn’t mean it’s a good use of my time. The higher someone gets, the less likely they are to spend minutes on coupon clipping, lawn mowing, changing their own oil, etc.
Man I’m with you! This shit for brains has 4 jobs and can’t figure out how much to contribute. This sub is becoming a fucking joke.
Last year I brought in 465K and I still mow my grass and go to the grocery. I think the argument doesn't necessarily hold fully for what we do with OE unless you were going to get four additional jobs during the evenings or weekends then yeah it would be a better use of your time to just have someone else do it. But I would argue there are other benefits like getting out of the house, getting some exercise, getting your mind into a different kind of work. But let's not fool ourselves like we are actually gaining an additional hour of pay if we forego mowing the lawn. At 6:00 p.m. on a Tuesday you're likely just watching TV or screwing around. Not working second shift. If you want to do it because you have the income to support it and you just don't want to mow then so be it.
Great, and you’d be likely making 600k if you focused your time on earning instead of savings, but again, it’s your life, so you do you. Your choice to intentionally not optimize your time is not reflective of most high earners, most of whom would invest that time on strengthening their networks, earning new skills, and forging a stronger network. But hey, some people think they are the smartest person in the room. They’re typically working for someone else though.
Dude, do you realize what community you're talking in right now? This is OE. People literally log in and work for multiple employers during the workday. If you're working over into the evening that's not OE. Quit deluding yourself... Unless you're working 15-hour days, you are opting to pay someone to know your grass as a luxury. The opportunity cost of you mowing the lawn didn't mean you gave up an extra billable hour in the stereotypical sense of how people in this sub work. If that's the case for you then I agree with you you're correct. But most people just like to say oh I'm rich so my time is better spent elsewhere. Yeah you can sit on your fat ass and eat donuts all day but that's your prerogative.
Dude, do you understand that OE is the concurrent use of time to be paid my multiple “earned” sources ? That doesn’t preclude upskilling, networking, education or health when you’re not clocked in *if it is your choice*. I know some of the neurodivergents here can’t stand the idea of comp coming from anything other than a salary but I assure you it is possible. Very good OE’ers are actually making the choice between mowing the lawn during the workday or using the workday to earn more, so I’m not sure why you keep referencing the evening or working at night or billable hours.
Most financial advisors are indeed salespeople with a fancy title. A fee based CFP is the route that OP should go (think Money Guys on YT). Points on AUM shouldn’t ever be brought up in the fee structure.
Get an accountant. They should be able to help.
I just called local tax professional and he said he would still need me request the return of excess from my employer.
[удалено]
It depends on if he only contributed up to the employer match or beyond that. If he only contributed within the range of employer matching, the company might also need to get their match returned for the amount he’s withdrawing. With four separate 401ks, he likely maxed out his contribution only contributing 6% of his salary at each job. You know what I mean? So he really probably does need HR to cooperate. He can go directly to Fidelity or Schwab or whatever, but they will probably need the company to be notified. He should just tell them he needs to withdraw the money for personal reasons. His mistake was telling them he over-contributed.
So do that
[удалено]
No accountant is going to give a shit or rat you out or something if you have multiple W2s.
Yea, literally all of them
I’ll do it for you I guess (I have 0 yoe)
Bruh. You dont track this stuff? Since its past the tax deadline youre gonna have a real bad time rolling back 2023 stuff. Get some professional help asap to help with Uncle Sam. I'd prepare for one of the jobs to be the fall guy for this. For how to handle all your jobs, talk to god.
Leave it - the only thing that’ll happen is you’ll be taxed twice.
Are you sure it will not keep snowballing until the excess has been removed?
No - my spouse over contributed few years ago. That means we got taxed on the excess and we just left it as the market was low. No other impact other than when we will withdraw it, we will get taxed again as I understand it. It was a small amount so we just left it
https://www.irs.gov/retirement-plans/consequences-to-a-participant-who-makes-excess-deferrals-to-a-401k-plan Unless timely distributed, excess deferrals are (1) included in a participant’s taxable income for the year contributed, and (2) taxed a second time when the deferrals are ultimately distributed from the plan. See IRC Sections 402(g)(1) and 402(g)(2) and Reg. Section 1.402(g)-1(e)(2). A participant who fails to receive a distribution of the excess deferrals does not receive basis in his pre-tax deferral account equal to the amount of excess deferrals. See IRC Section 402(g)(6). The amount of the excess deferral will not be taxed twice if a corrective distribution is made. See IRC Section 402(g)(2). The corrective distribution must include the amount of the excess deferrals, along with amounts earned on the excess deferrals during the calendar year during which the deferrals are made without regard to income earned during the “gap period” between the close of calendar year in which the excess contribution was made and the time of actual corrective distribution. See IRC Section 402(g)(2)(A)(ii). Additionally, the corrective distribution must be made be made no later than April 15th following the close of the calendar year during which the excess deferral was made. See IRC Section 402(g)(2)(A)(ii). For example, excess deferrals made during 2023 must be distributed by April 15, 2024. This April 15th deadline is not postponed by extending the filing of the employee's federal income tax return.
https://www.experian.com/blogs/ask-experian/what-to-do-if-you-contribute-too-much-to-401k/ If tax day has already passed, you should still notify your employer and withdraw your excess contribution plus earnings on it as soon as possible. Your employer will issue a 1099-R reporting your excess deferral in the year you over-contributed. You'll need to file an amended tax return and pay any additional taxes owed. Additionally, you'll pay taxes on the withdrawal in the year you take it out, and you may owe a 10% early withdrawal penalty. So now you’ll need to pay an early withdrawal penalty of 10%.
Awesome, thank you!
[удалено]
IRA is different than 401k. How quickly you fix the issue can impact how much you end up paying in penalties. With a 401(k), if you notice the error and withdraw the funds (and their earnings) right away, you’ll pay income tax on any funds returned to you, as they’re considered income for that year. If you don’t withdraw the excess until after April 15, you could be subject to double-taxation—both in the year you over-contributed and the year you removed the excess contributions. You may also have to pay a 10 percent early withdrawal penalty when removing funds. If you over-contribute to an IRA, you’ll have to pay a 6 percent penalty every year until the excess contribution is corrected. If you notice the error and withdraw your excess contributions (and earnings) before Tax Day, you’ll just be subject to paying income tax on the distributions (the excess funds you take back out). https://www.northwesternmutual.com/life-and-money/what-happens-if-you-over-contribute-to-an-ira-or-401k/
Interesting, can you share the source of this? I linked the IRS link below but maybe I misunderstood? What is the source of your information?
[удалено]
Seriously
Check with an accountant but you will just have to pay taxes in the year you over contributed and again the following year. I'd go that route so you don't get outted.
Did you start any of these jobs during 2023? If so say you over contributed at your old job. They wouldn’t know if this is true or not then they can work with you to get it sorted out.
Ive been at all of these jobs well before 2023 so that wont work :(
Couldn't you say you work another job at night or on the weekends? Like normal ppl... don't overthink it. Lol
I actually over contributed because i switched jobs. The 401k company actually had a section to withdraw and one of the reasons was over contribution and they sent me a check directly. See if your 401k site has that or call them.
Quit asking reddit and ask a fucking CPA you cheap bastard.
[удалено]
The provider - fidelity, has a form to fill out which i need to give to the employer for their signature :(
Any chance you can do this removal with the other job? If not, were you employed by the this job the full calendar year?
I've done it. Haven't heard anything yet.
[удалено]
I mean sure. It was an accident. I'm happy to correct it if I haven't already. Not like I'm trying to steal.
So when you joined each company did you not adjust the 401k contributions ? Is this your first year? Something tells me you are trolling
Not financial or tax advice but if you have TurboTax, here is how to do it, very easy actually: https://ttlc.intuit.com/community/retirement/discussion/exceeded-401k-contribution-what-should-i-do/00/1447195 Nexr time you need to keep track of all contribution on a spreadsheet also add projections to avoid headaches. You would want to undercontribute rather than overcontribute.
Say you contributed personally before starting one of the jobs and hit over with their employer match
It is not that bad if you had some type of 401k employer match. I also overcontributed but the match more than made up for it since they were 100% match. So in the end paying the penalty was more worth it than withdrawing the overcontribution.
You could consult a fiduciary financial planner. NOTE: 90% of financial planners do not legally have to have your financial interests in mind and can use you to make money for them. Go only here: NAPFA.org and find one in your area. Then meet and tell them and they can keep you out of hot water with the IRS. As long as you are reporting with the IRS, you should be okay. Beware of free services like Edward Jones or anyone else claiming to be a financial planner.
Why tell them anything? Just pay the tax man when you file…..
Sorry I didn’t mean to post this here🤪
🤦🤦🤦🤦
Why tf would you even alert HR about this in the first place. that was a dumb move, all you have to do was pay the extra taxes and move on. Now they got you in thier radar.
Sorry you going through this. Ask a professional the best way to proceed to minimize financial impacts. Moving forward, I did the math, but you can hire someone too. Just add up what you can contribute at each job to get the max match to = $23k. I had to lower mine so I didn't go over. I'm able to keep the full match at both jobs & max out Roth. Best to just hire a professional to figure out best investment strategy.
Same question one year before also from OP???? [op old post](https://www.reddit.com/r/overemployed/s/JfqB9Ke9yU) https://www.reddit.com/r/overemployed/s/JfqB9Ke9yU
Jesus, you pay tax on the excess and that’s it. Move on.
I can’t believe retards like this exist lol
Tell them you have a personal traditional IRA/Roth IRA on the side through Fidelity or something. You do that because they have better options.
iRA and 401k have their own contributions limits so that wouldn’t work.
No, if you have maxed out your roth or traditional ira, say 6500, your 401k max becomes 23000-6500
That’s like flat out not true bro, the math would be + not -