Author Topic: employer makes 401k mistake  (Read 1472 times)

Crazycarl

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employer makes 401k mistake
« on: June 09, 2017, 12:22:13 PM »
Last year I was putting a portion into a reg 401k, and some into my Roth 401k. April 2016, I changed it to all go into my reg 401k, as I realized I needed to lower my taxable income more.

As I was checking my transactions today, I realized that some money was still going into my ROTH portion. I checked the allocation part, and it still said ROTH - 0%, so I called Fidelity and they stated that they can see I made the change in April of 2016, and they sent my employer the forms or request to udpate, however, they didn't make the change.

Is there anything I can do? This has been going on for over a year. I can probably re-characterize for this year, correct? Anything I can do for last year?

It is probably not a lot of money, but I still paid taxes on money I shouldn't have.

Thoughts?

Thanks all

MDM

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Re: employer makes 401k mistake
« Reply #1 on: June 09, 2017, 03:19:34 PM »
You may need to get your employer's payroll and benefits department (or whatever they call it) involved, because you can't change 401k contributions yourself.  If an error occurred in 2016 you will need a corrected W-2 so you can file a corrected 2016 return.

Might be worth keeping your own spreadsheet to track paystubs and project taxes for the rest of the year.

 

Wow, a phone plan for fifteen bucks!