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Author: Lucina Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121319  
Subject: 403B Overcontributions Date: 4/8/1998 11:22 AM
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I overcontributed $2000 to my 403B in 1997. I've already done my taxes for 1997. What is the penalty if I do nothing? I work Per Diem and it's difficult to guess what my income will be thus increase risk of error. I made $34,761 and I contributed $9336 to my 403B.
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3400 of 121319
Subject: Re: 403B Overcontributions Date: 4/10/1998 10:07 PM
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[[I overcontributed $2000 to my 403B in 1997. I've already done my taxes for 1997. What is the
penalty if I do nothing? I work Per Diem and it's difficult to guess what my income will be thus
increase risk of error. I made $34,761 and I contributed $9336 to my 403B.]]

Well, I don't know if you are overwithheld or not. If your plan administrator didn't tell you, you may not be. Generally, your contributions are 20% of your earned income times your years of service, minus tax free contributions made in prior years...to a max of $9,500.

So check with your plan administrator. If you find that you really ARE overwhthheld, the administrator will refund the overpayment. You'll pay tax (but not penalties) on the refund and earnings in the year that you receive them.

TMF Taxes
Roy

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