Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe UPS Forum
UPS Retirement Topics
Exceeding Maximum 401k in 2020
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="detmaintainer" data-source="post: 4618275" data-attributes="member: 33093"><p>I pulled this off the IRS website. I have a Co-worker who is at $32,000 between his Roth and Traditional 401k plans. I told him you better ask somebody . It looks like a 5% penalty if you don't have the fund return excess contributions before the end of the tax year. I heard they refund first from the any Traditional 401k contributions so you end up paying taxes on that. If anyone has knowledge that is different than this please let me know where I can look it up.</p><p><a href="https://www.irs.gov/retirement-plans/roth-comparison-chart#main-content" target="_blank">Skip to main content</a></p><p></p><p><a href="https://www.irs.gov/" target="_blank"><img src="https://www.irs.gov/themes/custom/pup_base/IRS-Logo.svg" alt="Home" class="fr-fic fr-dii fr-draggable " style="" /></a></p><ul> <li data-xf-list-type="ul">SEARCHTOGGLE SEARCH</li> <li data-xf-list-type="ul"><span style="font-size: 22px"><strong>HELP MENU MOBILE</strong></span><ul> <li data-xf-list-type="ul"><a href="https://www.irs.gov/help/telephone-assistance" target="_blank">HELP</a></li> </ul></li> <li data-xf-list-type="ul">MENUTOGGLE MENU</li> </ul><p><span style="font-size: 26px"><strong>Roth Comparison Chart</strong></span></p><p> </p><p><span style="font-size: 18px"><strong>More In Retirement Plans</strong></span></p><table style='width: 100%'><tr><td><p style="text-align: center"> <br /> <strong>Roth 401(k), Roth IRA, and Pre-tax 401(k) Retirement Accounts</strong><br /> </p> </td><td></td><td></td><td></td></tr><tr><td><p style="text-align: center"></p> </td><td><p style="text-align: center"><strong> Designated Roth 401(k) </strong></p> </td><td><p style="text-align: center"> <strong>Roth IRA</strong></p> </td><td><p style="text-align: center"><strong> Pre-Tax 401(k) </strong></p> </td></tr><tr><td><p style="text-align: center"> <strong>Contributions</strong></p> </td><td>Designated Roth employee elective contributions are made with <strong><em>after-tax dollars</em></strong>.</td><td>Roth IRA contributions are made with <strong><em>after-tax dollars</em></strong>.</td><td>Traditional, pre-tax employee elective contributions are made with <strong><em>before-tax dollars</em></strong>.</td></tr><tr><td><p style="text-align: center"> <strong>Income Limits</strong></p> </td><td>No income limitation to participate.</td><td>Income limits: <br /> <ul> <li data-xf-list-type="ul">2020 - modified AGI married $206,000/single $139,000</li> <li data-xf-list-type="ul">2019 - modified AGI married $203,000/single $137,000</li> </ul> </td><td>No income limitation to participate.<br /> </td></tr><tr><td><p style="text-align: center"> <strong>Maximum Elective Contribution</strong></p> </td><td><em>Aggregate</em>* employee elective contributions limited to $19,500 in 2020 and $19,000 in 2019 (plus an additional $6,500 in 2020 and $6,000 in 2019 for employees age 50 or over).</td><td>Contribution limited to $6,000 plus an additional $1,000 for employees age 50 or over in 2019 and 2020. </td><td>Same aggregate* limit as Designated Roth 401(k) Account<br /> </td></tr><tr><td><p style="text-align: center"> <strong>Taxation of Withdrawals</strong></p> </td><td>Withdrawals of contributions and earnings are <strong>not</strong> taxed provided it’s a <strong>qualified distribution</strong> – the account is held for at least 5 years and made:<br /> <ul> <li data-xf-list-type="ul">On account of disability,</li> <li data-xf-list-type="ul">On or after death, or</li> <li data-xf-list-type="ul">On or after attainment of age 59½.</li> </ul> </td><td>Same as Designated Roth 401(k) Account and can have a qualified distribution for a first time home purchase.</td><td>Withdrawals of contributions and earnings <strong>are</strong> subject to Federal and most State income taxes.<br /> </td></tr><tr><td><p style="text-align: center"> <strong>Required Distributions</strong></p> </td><td>Distributions must begin no later than age 72 (age 70 ½ if reached age 70 ½ before January 1, 2020), unless still working and not a 5% owner.</td><td>No requirement to start taking distributions while owner is alive.</td><td>Same as Designated Roth 401(k) Account.</td></tr><tr><td>* This limitation is by individual, rather than by plan. You can split your annual elective deferrals between designated Roth contributions and traditional pre-tax contributions, but your combined contributions can’t exceed the deferral limit - $19,500 in 2020 and $19,000 in 2019 ($26,000 in 2020 and $25,000 in 2019 if you're eligible for catch-up contributions).</td><td></td><td></td><td></td></tr></table><p>Page Last Reviewed or Updated: 20-Feb-2020</p><ul> <li data-xf-list-type="ul"><a href="https://www.irs.gov/retirement-plans/roth-comparison-chart#" target="_blank">Share</a></li> <li data-xf-list-type="ul">Print</li> </ul><p><span style="font-size: 22px"><strong>Our Agency</strong></span></p><p><span style="font-size: 22px"><strong>Know Your Rights</strong></span></p><p><span style="font-size: 22px"><strong>Resolve an Issue</strong></span></p><p><span style="font-size: 22px"><strong>Other Languages</strong></span></p><p><span style="font-size: 22px"><strong>Related Sites</strong></span></p></blockquote><p></p>
[QUOTE="detmaintainer, post: 4618275, member: 33093"] I pulled this off the IRS website. I have a Co-worker who is at $32,000 between his Roth and Traditional 401k plans. I told him you better ask somebody . It looks like a 5% penalty if you don't have the fund return excess contributions before the end of the tax year. I heard they refund first from the any Traditional 401k contributions so you end up paying taxes on that. If anyone has knowledge that is different than this please let me know where I can look it up. [URL='https://www.irs.gov/retirement-plans/roth-comparison-chart#main-content']Skip to main content[/URL] [URL='https://www.irs.gov/'][IMG alt="Home"]https://www.irs.gov/themes/custom/pup_base/IRS-Logo.svg[/IMG][/URL] [LIST] [*]SEARCHTOGGLE SEARCH [*][SIZE=6][B]HELP MENU MOBILE[/B][/SIZE] [LIST] [*][URL='https://www.irs.gov/help/telephone-assistance']HELP[/URL] [/LIST] [*]MENUTOGGLE MENU [/LIST] [SIZE=7][B]Roth Comparison Chart[/B][/SIZE] [SIZE=5][B]More In Retirement Plans[/B][/SIZE] [TABLE] [TR] [TD][CENTER] [B]Roth 401(k), Roth IRA, and Pre-tax 401(k) Retirement Accounts[/B] [/CENTER][/TD] [TD][/TD] [TD][/TD] [TD][/TD] [/TR] [TR] [TD][CENTER] [/CENTER][/TD] [TD][CENTER][B] Designated Roth 401(k) [/B][/CENTER][/TD] [TD][CENTER] [B]Roth IRA[/B][/CENTER][/TD] [TD][CENTER][B] Pre-Tax 401(k) [/B][/CENTER][/TD] [/TR] [TR] [TD][CENTER] [B]Contributions[/B][/CENTER][/TD] [TD]Designated Roth employee elective contributions are made with [B][I]after-tax dollars[/I][/B].[/TD] [TD]Roth IRA contributions are made with [B][I]after-tax dollars[/I][/B].[/TD] [TD]Traditional, pre-tax employee elective contributions are made with [B][I]before-tax dollars[/I][/B].[/TD] [/TR] [TR] [TD][CENTER] [B]Income Limits[/B][/CENTER][/TD] [TD]No income limitation to participate.[/TD] [TD]Income limits: [LIST] [*]2020 - modified AGI married $206,000/single $139,000 [*]2019 - modified AGI married $203,000/single $137,000 [/LIST][/TD] [TD]No income limitation to participate. [/TD] [/TR] [TR] [TD][CENTER] [B]Maximum Elective Contribution[/B][/CENTER][/TD] [TD][I]Aggregate[/I]* employee elective contributions limited to $19,500 in 2020 and $19,000 in 2019 (plus an additional $6,500 in 2020 and $6,000 in 2019 for employees age 50 or over).[/TD] [TD]Contribution limited to $6,000 plus an additional $1,000 for employees age 50 or over in 2019 and 2020. [/TD] [TD]Same aggregate* limit as Designated Roth 401(k) Account [/TD] [/TR] [TR] [TD][CENTER] [B]Taxation of Withdrawals[/B][/CENTER][/TD] [TD]Withdrawals of contributions and earnings are [B]not[/B] taxed provided it’s a [B]qualified distribution[/B] – the account is held for at least 5 years and made: [LIST] [*]On account of disability, [*]On or after death, or [*]On or after attainment of age 59½. [/LIST][/TD] [TD]Same as Designated Roth 401(k) Account and can have a qualified distribution for a first time home purchase.[/TD] [TD]Withdrawals of contributions and earnings [B]are[/B] subject to Federal and most State income taxes. [/TD] [/TR] [TR] [TD][CENTER] [B]Required Distributions[/B][/CENTER][/TD] [TD]Distributions must begin no later than age 72 (age 70 ½ if reached age 70 ½ before January 1, 2020), unless still working and not a 5% owner.[/TD] [TD]No requirement to start taking distributions while owner is alive.[/TD] [TD]Same as Designated Roth 401(k) Account.[/TD] [/TR] [TR] [TD]* This limitation is by individual, rather than by plan. You can split your annual elective deferrals between designated Roth contributions and traditional pre-tax contributions, but your combined contributions can’t exceed the deferral limit - $19,500 in 2020 and $19,000 in 2019 ($26,000 in 2020 and $25,000 in 2019 if you're eligible for catch-up contributions).[/TD] [TD][/TD] [TD][/TD] [TD][/TD] [/TR] [/TABLE] Page Last Reviewed or Updated: 20-Feb-2020 [LIST] [*][URL='https://www.irs.gov/retirement-plans/roth-comparison-chart#']Share[/URL] [*]Print [/LIST] [SIZE=6][B]Our Agency Know Your Rights Resolve an Issue Other Languages Related Sites[/B][/SIZE] [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe UPS Forum
UPS Retirement Topics
Exceeding Maximum 401k in 2020
Top