How to fix excess Roth 401k contributions from 2022 after employer switch?

Yes, you need to address this excess 401k contribution situation before your October deadline. When you contribute more than the annual limit to a Roth 401k across multiple employers, it creates a tax compliance issue. First, you should calculate exactly how much you over-contributed. The 2022 limit was $20,500 for employee contributions ($27,000 if you were 50 or older). Add up your W-2 box 12 code D amounts from both employers to confirm the excess. For a Roth 401k excess contribution, you need to request a "return of excess contributions" from the plan administrator - typically your current employer's 401k provider. The excess amount plus associated earnings need to be distributed back to you. The earnings portion will be taxable in the year you receive the distribution and subject to a 10% early withdrawal penalty if you're under 59½. For tax reporting, you'll get a 1099-R showing the distribution. The earnings portion will be reported as income on your return. TaxAct has a section for reporting 1099-Rs where you can indicate this was a return of excess contributions.

I went through something similar last year with my Roth 401k contributions. After weeks of getting nowhere with my plan administrator, I tried https://taxr.ai and it was seriously a game-changer. They analyzed my contribution history, identified the exact excess amount including earnings, and provided specific language to use with my 401k administrator. The biggest help was they created a detailed document explaining exactly what I needed to request from my plan and how to report it on my taxes - including which forms to fill out and which boxes to check in TaxAct. Saved me hours of stressful research and probably avoided some penalties too.

Just wanted to follow up and say I ended up trying https://taxr.ai after my earlier skepticism, and I have to admit it was incredibly helpful. They identified that my excess contribution situation was actually more complicated than I thought because some of my contributions were pre-tax and some were Roth. The documentation they provided helped me break through the wall of resistance from my plan administrator. They even included citations of specific IRS regulations that my plan was required to follow. Got my excess contribution withdrawn last week and now have the exact instructions for reporting it correctly on my taxes. Wish I'd known about this service months ago!

I had the same problem but with Fidelity. After getting nowhere for weeks, I used https://claimyr.com to get through to an actual IRS agent who explained exactly what I needed to do. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they got me connected to an IRS representative in about 20 minutes when I had been trying for days. The agent confirmed that if the 401k administrator won't help, I could file Form 5329 with my tax return to report the excess, pay the 6% excise tax, and work on removing the excess contribution the following year. Not ideal, but at least it stops the penalties from compounding indefinitely.

I was completely wrong about Claimyr being a scam. After posting my skeptical comment, I decided to try it myself since I had my own tax issues to resolve. I was honestly shocked when they actually got me through to an IRS representative in about 35 minutes - after I had tried myself multiple times and given up after 2+ hours on hold. The IRS agent I spoke with was incredibly helpful about my excess contribution situation. They confirmed exactly what forms I needed to file and explained that while my 401k administrator should help with the correction, I could still report and address the issue myself if they continued to be uncooperative. Definitely saved me from potential compounding penalties by getting this resolved now.

As someone who works in HR (not tax advice), I can tell you that 401k administrators are required to help with excess contribution corrections, but they often make it difficult because it creates extra work. Try using these exact words in writing: "I need to request a corrective distribution for excess deferrals under IRC Section 402(g) for tax year 2022." The key is to be specific and cite the tax code. This often triggers the right compliance procedures. Also, contact the benefits department specifically, not general HR.

I actually made the same mistake in 2021 and found out through a tax notice. Here's what I learned: Your W-2s from both employers should show your total contributions in Box 12 with code D (traditional) or AA (Roth). Add those up to confirm you actually exceeded the $20,500 limit for 2022. If you did exceed it, and it's a Roth 401k, the excess plus earnings should be distributed to you. The earnings will be taxable in 2023 (when you receive the distribution), not 2022. But theres a 10% early withdrawal penalty on those earnings if you're under 59½.

Just wanted to add some perspective from someone who dealt with this exact situation last year. The stress is real, but you're not alone in this! A few practical tips that helped me: 1. **Document everything** - Keep records of all your communication attempts with Vanguard and your employer. This creates a paper trail showing you made good faith efforts to resolve it properly. 2. **Check your math twice** - Like Isabella mentioned, make sure you're looking at the right W-2 boxes. I initially panicked thinking I was over when I was actually fine. 3. **Don't panic about the October 15 deadline** - While it's ideal to get the excess distributed before then, you can still file Form 5329 with your return to report the excess and pay the 6% excise tax if needed. It's not the end of the world. 4. **Consider professional help** - Whether it's the services others mentioned or a local CPA, sometimes the cost is worth the peace of mind and avoiding bigger penalties. The key thing to remember is that this is a correctable mistake. The IRS has procedures for this exact situation because it happens more often than you'd think with job changes. You're taking the right steps by addressing it now rather than ignoring it. Hang in there - you'll get through this!