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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: ambimammular on November 06, 2015, 08:01:40 PM

Title: over the 403b limit
Post by: ambimammular on November 06, 2015, 08:01:40 PM
I thought DH's 403b contributions couldn't go over the limit because his work wouldn't allow it. Well, we're at $18,000.74.

Should I be worried about this? Round it down on the taxes? Assume the IRS won't bother over such a small amount over? How do I fix it anyway?
Title: Re: over the 403b limit
Post by: 3okirb on November 06, 2015, 08:41:42 PM
I thought DH's 403b contributions couldn't go over the limit because his work wouldn't allow it. Well, we're at $18,000.74.

Should I be worried about this? Round it down on the taxes? Assume the IRS won't bother over such a small amount over? How do I fix it anyway?

This should answer your question.

https://www.irs.gov/publications/p571/ch07.html
Title: Re: over the 403b limit
Post by: MDM on November 06, 2015, 10:18:13 PM
I thought DH's 403b contributions couldn't go over the limit because his work wouldn't allow it. Well, we're at $18,000.74.

Should I be worried about this? Round it down on the taxes? Assume the IRS won't bother over such a small amount over? How do I fix it anyway?
If it is only $1 ($0.74 rounded up), it probably isn't worth doing anything.  You probably won't pay any extra tax even with this included in your income, due to most of the tax tables having $50 increments between tax changes.

The thing you (or DH) should check is whether the November and December paychecks will continue to have 403b contributions withheld....