Go to Jeff Salisbury LWGate Home Page.From: "Ravinder Bhumbla" <rbhumbla@ford.com>
Subject: 401(k) Excess contributions?
Date: Mon, 28 Sep 1998 14:33:39 -0400
Next Article (by Subject): Re: Capital One Jrice45515@aol.com
Articles sorted by: [Date]
[Author]
[Subject]
In 1997 I changed employers mid-year. My previous employer allowed me to contribute over 30% of my salary to my 401(k) during the first half of the year and it was enough for me to reach the $9500 IRS limit before I changed jobs (I was not eligible for a 401(k) at the new employer that year). Now, my previous employer tells me that I overconributed and need to have the excess contributions returned to me. This refers to the 25% max deferral rule (Section 415?). They say that my contributions exceeded 25% of my salary with the old employer even though they were less than 25% of my total W-2 wages for 1996. They say that salary earned at the new employer cannot count towards my contributions at the previous employer. My question: Does the 25% IRS limit apply to the TOTAL salary I earned in 1997 (W-2 wages) or is the contribution at EACH employer limited to 25% of what that particular employer paid me? I'd appreciate any answers and if possible reference to a citation that I can give my previous employer. Thanks, - -- Ravinder Bhumbla rbhumbla@av1377.pd8.ford.com (313) 322-6601 I do not speak for Ford Motor Company - -
Next Article (by Subject): Re: Capital One Jrice45515@aol.com
Articles sorted by: [Date]
[Author]
[Subject]