How to Avoid 401(k) Overcontributions

[@shiyiyin3403]

1:09 I love what you said about "trust but verify", I had some over contribution this calendar year, which HR promised to take care of it, but I found out they dropped the ball, after I vigorously follow up with HR try to resolve it, I am almost done after 1 month of struggle. Thank you for your video.

[@chrisdime]

Wow good thing you caught it in time! Sorry to hear about the ordeal.

[@rachaelwolf3966]

Hi! Thanks for video. You answered a lot of questions I was wondering about. Can you clarify one thing please. In regard to the having multiple 401k’s in the same year. I had one 401k at a hospital and then started another for the fed govt (tsp). I am allowed to have up to $23500 in each 401k for the same tax year??

[@chrisdime]

Great question! While you are permitted to FUND as many 401(k)s, TSPs, etc. throughout the year that you have access to. Your EMPLOYEE contributions in total are limited to $23,500 (for 2024). This does not preclude companies from matching you and doing "profit sharing" contributions. In my original video I misspoke and said that you could fully fund multiple 401(k)s throughout the year, this was incorrect. You can FUND multiple 401(k)s throughout the year but you as the EMPLOYEE cannot fund more than $23,500 in TOTAL among all of your plans. Does that help clarify your question?

[@shiyiyin3403]

If I have overcontribution for 2024 calendar year, and fix the error before 12312024, I will not be double taxed, is that correct?

[@chrisdime]

I believe so! Best to check with your TPA/Custodian though because they're the ones that produce the 1099-R when money is removed from your retirement account.