Author Topic: Tax question  (Read 1386 times)

MustardTiger

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Tax question
« on: January 20, 2015, 07:17:47 PM »
I have an i401k for my side business, which made a small profit in 2014.  I contributed to the account but took a loss toward the end of the year and realized I over contributed by about 1k.  What are my options here?

-I could avoid some deductions so that it works out and I didn't overcontribute.

-Cashout?  seems bad since I would have to pay a fee

-My wife also has a i401k through Vanguard.  Is there anyway to roll over that amount to her account?

-Something I am missing?

Thanks.

webguy

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Re: Tax question
« Reply #1 on: January 20, 2015, 07:23:56 PM »
I over-contributed to my SEP IRA for 2014 by about $700. I just called Vanguard today to ask them what I could do. They told me that I can move the money out of the account and then I'd only have a pay penalty on the earnings from that amount. So my $700 turned into $750 so I move the whole amount out of the account and pay the penalty on the $50. I'd also need to file form 5329 with my 2014 taxes to declare the excess contribution and penalty incurred. It might be worth giving Vanguard (or whoever the i401k is with) to clarify with them.