For the past two months, I’ve accidentally contributed 80% of my net pay towards 401K. Is there a way to withdraw from 401K without attracting any penalties

likefunny
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Damn. I strive to be so well off I don’t notice 80% of paycheck missing for 2 months.

likefunny

This happened when I changed contribution in December. With the holidays, it’s my fault, I didn’t check sooner. Realized it prior to the first paycheck of this year.

I audit employee benefit plans. If it was truly in error, I have seen refunds given. But the sooner the better… work with HR or whoever administers your plan

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No one knows if they were over the limit. Op has not answered that yet. If they are, they should be able to get the amount over the limit refunded. Unless they had another job for part of the year, I would be surprised if Deloitte did not auto stop at the limit.

Can’t you just stop contributing for a while? You could ask the administrator if you can get some refunded. Or you could take a loan. Did you go over the limit in 2021?

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Did you go over the 2021 limit?

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If you contributed more than you would like and are over the limit the government sets, then the employer works with the 401(k) provider to refund the excess contribution. There is no penalty for this refund of excess contribution. It may result in a amended W-2 if one was already issued. If you contributed more than you would like and are under the limit the government sets, then it’ll be treated as a withdrawal and you’ll pay a penalty because you have not met the age that allows for penalty free withdrawals.

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