USA How to fix excess 401k deferrals after the tax deadline

May 7, 2022
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United States
I'm new here and apologize in advance if this question doesn't belong here.

So, my story is - last year I switched employers. I had both traditional 401k and Roth 401k plan with my old employer which I maxed out ($19,500) before quitting that job.
Due to a mistake on my part, my new employer didn't have accurate details of my previous contributions which resulted in excess contributions to both 401k + Roth 401k with my new employer.

The other mistake I did is, I didn't discover it until the tax deadline date of April 15th 2022. So I filed for an extension which got approved. When I reached out to the new 401k company to get the excess processed and returned to me, they said that it cannot be done after the tax deadline of April 15th and also looks like the plan doesn't allow withdrawals. I'm in my 40s. I called the old 401k company and they said the same thing but they also said that since I don't work with my previous employer now, withdrawals are allowed with penalties of course but it may not necessarily result in correction. Its just like taking money out of your account with penalties and taxes.

So the big question is, how do I fix this once for all. I don't mind paying a penalty or whatever it takes to move the excess out and meet the legal guidelines.

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