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I had two different jobs last year and just noticed (after filing my taxes) that I am about $2000 over the maximum 10,500 for 401K contributions. What are the steps I need to take to rectify the situation now?

I assume that you did not include the excess defferal in your income when you filed. You must file an amended return on Form 1040X to include the excess in your year 2000 income.

At this point, that's all you can do. You're taxed on the amount in year 2000, and you'll be taxed on it again when you withdraw it in retirement. See page 7 of Publication 525.

Phil Marti
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