Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Am I going to have to pay a penalty tax? IOW, is the $10,500 max per employer or for the year in total?


The limit is $10,500 per person not per employer. There shouldn't be any penalty but the excess would have to be refunded to you or go into the 401k as after tax contributions if the plan allows it. I think most plans do accept after tax money. Of cource the regular income tax needs to be paid and I'm not sure how the overage is discovered and how and which employer has to correct the records.
Print the post  

Announcements

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.
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.