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Hi all,
I've read many threads on this site but haven't found anything that quite matches my situation, so apologies if this is somewhat redundant.
I changed jobs in 2012 and had excess deferrals to my two separate 401ks (no excess in any single account) in the amount of $1900.47. I contributed to both Roth 401k and pre-tax 401k.
Subsequent to my departure, I rolled over my 401k to a Charles Schwab rollover 401k account. The previous 401k (ING) doesn't have any funds left in my old account.
I could request the excess from my new 401k, but then my company would claw back the matching dollar amounts. So I don't want to do that.
I expect a 1099-R from the previous 401k (ING) showing a rollover distribution of the gross amount, let's call it $50,000, including Roth 401k and pre tax 401k amounts. Schwab says I can get the withdrawl of excess from them (Schwab). What they are telling me to do is get two corrected 1099-Rs from my previous 401k as follows:
**One corrected 1099-R would show a distribution of the excess ($1900.47) plus any earnings. I would ask the previous 401k to calculate the earnings. It should only be a few cents. This would be coded "8" in box 7 of the first corrected 1099-R;
**A second corrected 1099-R showing the gross distribution ($50,000) minus whatever is calculated as the excess plus earnings from the first corrected 1099-R. This would be coded as "G" in box 7.
I would then show Schwab the excess + earnings amount, they would calculate the additional earnings since that amount was deposited at Schwab, withdrawn the total calculated amount, and issue a 1099-R in 2014 for TY 2013. Not sure of the coding in box 7.
Is this correct?
One possible complication that I haven't seen addressed anywhere: my pre-tax contributions in the previous 401k for 2012 were only $847. So can I, in fact, request an excess distribution of $1900.47 in 100% pre-tax dollars when I didn't have that much in actual pre-tax deferrals? I have that much in total pre-tax dollars with the previous 401k, but that includes amounts from prior years. And of course for TY 2012 I have more than the excess in total pre-tax dollar contributions. I would prefer not to complicate matters by characterizing some of the withdrawn excess as after-tax and some as pre-tax dollars.
Apologies for the length, but it's a bit messy.
I've read many threads on this site but haven't found anything that quite matches my situation, so apologies if this is somewhat redundant.
I changed jobs in 2012 and had excess deferrals to my two separate 401ks (no excess in any single account) in the amount of $1900.47. I contributed to both Roth 401k and pre-tax 401k.
Subsequent to my departure, I rolled over my 401k to a Charles Schwab rollover 401k account. The previous 401k (ING) doesn't have any funds left in my old account.
I could request the excess from my new 401k, but then my company would claw back the matching dollar amounts. So I don't want to do that.
I expect a 1099-R from the previous 401k (ING) showing a rollover distribution of the gross amount, let's call it $50,000, including Roth 401k and pre tax 401k amounts. Schwab says I can get the withdrawl of excess from them (Schwab). What they are telling me to do is get two corrected 1099-Rs from my previous 401k as follows:
**One corrected 1099-R would show a distribution of the excess ($1900.47) plus any earnings. I would ask the previous 401k to calculate the earnings. It should only be a few cents. This would be coded "8" in box 7 of the first corrected 1099-R;
**A second corrected 1099-R showing the gross distribution ($50,000) minus whatever is calculated as the excess plus earnings from the first corrected 1099-R. This would be coded as "G" in box 7.
I would then show Schwab the excess + earnings amount, they would calculate the additional earnings since that amount was deposited at Schwab, withdrawn the total calculated amount, and issue a 1099-R in 2014 for TY 2013. Not sure of the coding in box 7.
Is this correct?
One possible complication that I haven't seen addressed anywhere: my pre-tax contributions in the previous 401k for 2012 were only $847. So can I, in fact, request an excess distribution of $1900.47 in 100% pre-tax dollars when I didn't have that much in actual pre-tax deferrals? I have that much in total pre-tax dollars with the previous 401k, but that includes amounts from prior years. And of course for TY 2012 I have more than the excess in total pre-tax dollar contributions. I would prefer not to complicate matters by characterizing some of the withdrawn excess as after-tax and some as pre-tax dollars.
Apologies for the length, but it's a bit messy.