I recently went over the 66k limit for employer + employee contributions to 401k with my most recent paycheck (I have one paycheck left for the CY). I'm under the 22,500 pre-tax limit. I called Fidelity, who manages the plan, to ask if I could just have the overage returned. After a long hold, he comes back with "we have to send you a check in Q124, and nothing can be done right now." Since that check is after-tax income (with the exception of earnings if the market is good the next few months - I know those earnings would be taxable), will I be double-taxed or penalized in 2024 tax year?
Also, this is the shorter version of my longer question asked here: Excess deferrals to after-tax, non-Roth 401k (just happened this paycheck) – just ask the plan for a reversal? Tax implications? MBDR implications?
Hopefully someone will know something. Thanks.
