Can I make corrective distributions of excess plan contributions?
To correct over funding, the plan administrator may distribute the excess plan contributions (along with any income earned on the excess). The corrective distributions are reported on Form 1099-R and are still taxable. They cannot be rolled over into another plan, but are not subject to the additional tax on early distributions as follows.
Related Questions
- Will I be able to request and receive a refund for excess contributions after Jan. 31, 2003, and before I plan to retire?
- Can features such as minimum benefits, excess contributions and Social Security integration be added to the Plan?
- How and when do I report distribution of excess deferrals or excess contributions from my 401(k) Plan?
