Ask Experts Questions for FREE Help !
Ask
    Gmiller1188's Avatar
    Gmiller1188 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 13, 2007, 02:33 PM
    401k overfunded
    Back in 2005 at a previous company my 401k was overfunded by $3500 through the company match. This was discovered in a recent audit & several employees who were considered highly compensated received the same notice. I got a letter from the company that managed the 401k saying I had to amend my 2005 1040's by $3500, which I did, pay the additional tax, which I did, & if I had rolled this $3500 into an IRA when I left the company, I needed to take it out of the IRA or face penalties. When I called to take the money ou, they said they will still charge me the early withdrawal penalty & tax. Is this correct? I have already claimed this money as income & was told I HAD to remove it from the IRA. My financial planner has no clue either. Thanks for any help.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #2

    Apr 25, 2007, 09:58 AM
    Did you ever get an answer to your question? You might want to try posting this questionj in the taxes forum. I agree that it doesn't seem right that the IRA penalizes you for your company's mistake. I wonder if there is a way to claim the 10% penalty back as a credit on your taxes?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k ? [ 2 Answers ]

I asked this question maybe I was not clear enough. I withdrew my 401k when I lived and worked in NY. Later in the year I moved to PA and took a job in NJ. I have to file taxes in all 3 states do I have to claim that 401k money as income in all 3 states? I have not seen this type of multi state...

401k [ 8 Answers ]

I am inquiring as to whether a 401K account is still active after 6 years, even though I haven't put anything into it. If so, how do I go about inquiring how to get that money out of that account. The company I worked for has been sold to UPS and now I don't know how to get information on my old...

What to do with 401K [ 1 Answers ]

I am being let go from my job after 20 yrs. I may retire in less than a year. I will need to supplement my pension and Social Security. What is best route to reinvest my 401K, in order to collect a monthly amount?

401k [ 2 Answers ]

I WAS JUST WONDERING ABOUT HOW $ MONEY IS TAKEN OUT, WHEN YOU TAKE OUT ALL THE MONEY?:D I NEED TO CLOSE IT BECAUSE NO MORE MONEY IS BEING INVESTED IN TO IT.:eek: I GOT IT BECUASE THE COPANY I USE TO WORK FOR OFFERED IT TO ME BUT I DO NOT WANT IT ANY MORE. HOW DO I KNOW HOW MUCH WILL BE GONE?

View more questions Search