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Here's the scenerio:

At the begining of this year I was working at company A. Then layoffs came and I got the axe. Fortunately I found new employment quickly with company B and immediately started contributing the max. to my new employer's 401k.

Company B's 401k allows for a larger maximum percentage to be contributed per pay check than back at company A. This, combined with me receiving a little higher salary at Company B resulted in me reaching my total $10,500 contribution maximum last month.

The concern:

Since this year I both maxed out my 401k with company B and had some 401k withholding/contribution also with company A, my total combined (company A and B) 401k contributions for the year are over $10,500.

The question:

Am I going to have to pay a penalty tax? IOW, is the $10,500 max per employer or for the year in total?

Thanks.
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