No. of Recommendations: 0
Just when everything is going GREAT I open the mail and find some fluffy letter from my 401K provider about some corrective distribution (a sizeable amout) which is being returned to me. Basically it states that an HCE (highly compensated employee) is compared to a non-HCE and the IRS makes an adjustment to make life balanced. How nice!!!!

I was under the impression there is a $9500 cap on 401K contributions. Last year I maxed out and never played this game with the IRS.

Can anyone explain to me if this is correct and standard policy? and if so advise what my best options are to keep this as retirement (tax exempt money). I was not informed of this in advance to make corrections by my provider. Are they required to do so?

Thanks,
BALANCED BY IRS
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement