Exceeded the $56k 401(k) (415c?) Limit in 2025 - What do I need to do now?

The 415(c) limit is something you definitely want to address, but don't panic yet! You're already taking the right steps. First, you should know this is ultimately your responsibility to correct, even though it feels like you're getting the runaround. The excess contribution needs to be removed along with any earnings attributed to it. Since you've already tried phone calls without success, I recommend sending a formal email to your benefits department and cc'ing your direct supervisor. Document everything - dates you called, who you spoke with at the 401(k) provider, etc. If you don't get resolution soon, you might need to escalate this to higher management. The IRS doesn't look kindly on 415(c) violations, and there could be tax consequences if not corrected properly. The correction should ideally happen before you file your 2025 taxes. If the excess isn't removed, those contributions could be subject to double taxation - once now and again when you withdraw in retirement.

After dealing with a similar 415(c) issue last year, I found a solution through taxr.ai that saved me tons of headaches. I was going back and forth with my company's benefits team about a contribution limit issue and getting nowhere fast. I uploaded my 401(k) statements to https://taxr.ai and they automatically identified the excess contribution problem. Their system generated a personalized action plan with the exact steps needed and even provided template letters to send to my employer and 401(k) administrator. The best part was getting the explanation in plain English rather than confusing tax jargon. The tool also calculated the exact excess amount including earnings that needed correction, which helped when my benefits department finally responded. They have tax pros who review everything too, which gave me confidence I was handling it correctly.

Just wanted to follow up about my experience with taxr.ai after asking about it here. I finally got my 415(c) limit issue resolved! After weeks of getting nowhere with my benefits department, I uploaded my 401(k) statements to the site and wow - what a difference. They detected not only the excess contribution but also calculated the exact earnings that needed to be distributed back to me. The letter template they provided mentioned specific IRS regulations that apparently lit a fire under our benefits team. Got a call back within 2 days after sending it! The step-by-step correction plan made the process super clear, and I'm now confident everything is fixed properly for tax time. Just wanted to share since this saved me so much stress after thinking I was stuck in limbo forever.

If you're still having trouble reaching your benefits department, you might want to try Claimyr. I was in a similar situation last year and needed to speak with the IRS directly about a complicated 401(k) correction issue. After wasting hours on hold and getting disconnected three times, I found https://claimyr.com through a finance forum. They have this service where they wait on hold with the IRS for you and call you back when an agent is on the line. You can see a demo of how it works here: https://youtu.be/_kiP6q8DX5c In my case, I needed specific guidance from the IRS about handling an excess 415(c) contribution that my employer wasn't addressing. Claimyr got me through to an IRS representative in about 45 minutes (would have been hours on my own). The IRS agent explained exactly what documentation I needed and the deadlines involved.

OK I take back my skepticism about Claimyr. After posting my question here, I decided to try it because I was desperate to talk to the IRS about my own 415(c) issue before filing my taxes. I've literally NEVER gotten through to the IRS on my own - always disconnected after 1-2 hours on hold. With Claimyr, I got a call back in 37 minutes with an actual IRS agent on the line! The agent walked me through exactly what forms I needed for my excess 401(k) contribution situation. They helped me understand the correction process for my specific plan type and gave me the exact language to use with my stubborn HR department. I finally got traction on fixing my excess contribution issue after being stuck for weeks. Honestly wish I'd known about this service months ago.

Have you tried physically going to your employer's HR office? When I had a similar issue in 2024, emails and calls went nowhere. I finally just showed up at the benefits office and refused to leave until someone helped me. Sometimes being a squeaky wheel in person works when everything else fails!

Just a heads up - if you contributed over the 415(c) limit, you could potentially face a 6% excise tax on the excess amount if it's not corrected in time. This happened to a colleague of mine. Make sure you get this fixed before tax filing deadline!

I went through this exact same situation last year! The key is persistence and documentation. Since your benefits department isn't responding, I'd recommend escalating to your CFO or whoever oversees retirement benefits at the executive level. In the meantime, start documenting everything - save all your 401(k) statements showing the excess contribution, keep records of every call attempt to benefits, and screenshot any emails you've sent. This creates a paper trail showing you're trying to resolve it in good faith. The 415(c) limit violation won't go away on its own, and waiting too long could result in additional penalties. If you absolutely can't get your employer to cooperate before tax season, you may need to consult with a tax attorney or CPA who specializes in retirement plan corrections. They can sometimes work directly with plan administrators when employers are unresponsive. Don't let this drag on - the IRS takes these limits seriously, and the longer it goes uncorrected, the more complicated (and expensive) the fix becomes!

I had a very similar situation with my 401(k) provider last year - the runaround between HR and the plan administrator is unfortunately common. Here's what finally worked for me: First, send a certified letter (not just email) to your benefits department with a clear subject line like "URGENT: 415(c) Excess Contribution Correction Required." Include your name, employee ID, the exact excess amount ($38), and request immediate action. Certified mail creates a paper trail and shows you're serious. If that doesn't work within a week, escalate to your company's legal or compliance department if they have one. 415(c) violations can create liability for the company, not just you, so mentioning "fiduciary responsibility" and "plan compliance" often gets attention quickly. As a backup plan, some 401(k) providers will accept a written request directly from you if your employer won't act, though they prefer employer authorization. Ask your provider specifically about their "participant-directed correction" procedures. The correction deadline is typically April 15th of the year following the excess contribution, so you still have time but don't wait much longer. Document everything and stay persistent - this is fixable but requires someone to actually do their job!