401(k) Frequently Asked Questions
401(k) Frequently Asked Questions |
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| I
worked for two different companies in 1999 and my total 401(k) contributions exceeded the
$10,000 limit. What should I do? |
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You should notify the
benefits departments of both employers as soon as possible, so they can take the necessary
steps to correct the error. If you do not get the excess amount refunded to you before
April 15 of the year following the calendar year in which you paid too much, you will have
to pay a 10% penalty on the amount, as well as federal, state and local taxes.
For 2000, the maximum amount you can contribute before taxes to your 401(k) (or 401(k)s,
if you work for more than one employer during the year) is $10,500. |
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| Return to Contribution Questions |
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