Rich_by_the_Bay
Moderator Emeritus
I recently received a bonus payment as part of a productivity plan (basically, we busted our butts and are getting reimbursed for income that was ours right along, but that's another story). As a result, my normal 10.43% withhold for our TIAA-CREF 403b contribution was applied to that unexpected payment, as it is to all my paychecks. That amount would have been right if no bonus was paid.
Problem is, coming this late in the year, it put me over the contribution limit of $44,000 for the year. I immediately cancelled payroll deduction contributions through the end of the year but despite that will probably be about $2500 over.
I am checking into it at work but they appear befuddled. TIAA will call me back tomorrow. So, what happens? Can TIAA-CREF refund my employer who then passes it along to me less taxes, etc.? Will I have to pay an IRS penalty, or can I squirm out of it before 12/31?
Problem is, coming this late in the year, it put me over the contribution limit of $44,000 for the year. I immediately cancelled payroll deduction contributions through the end of the year but despite that will probably be about $2500 over.
I am checking into it at work but they appear befuddled. TIAA will call me back tomorrow. So, what happens? Can TIAA-CREF refund my employer who then passes it along to me less taxes, etc.? Will I have to pay an IRS penalty, or can I squirm out of it before 12/31?
