Good afternoon,
My company’s plan failed their average deferral percentage & as a result I am receiving a check back for $10k of my 2024 401k contribution. Is there anything I can do with this aside from depositing it in taxable & eating the extra tax bill next year? I believe it is classified as an in-service distribution according to the website.
For example, can I roll it into a non-deductible IRA (to then Roth convert)? Hoping there is some way to make lemonade with this unfortunate situation. We already max other available tax advantaged space.
Appreciate any help!
My company’s plan failed their average deferral percentage & as a result I am receiving a check back for $10k of my 2024 401k contribution. Is there anything I can do with this aside from depositing it in taxable & eating the extra tax bill next year? I believe it is classified as an in-service distribution according to the website.
For example, can I roll it into a non-deductible IRA (to then Roth convert)? Hoping there is some way to make lemonade with this unfortunate situation. We already max other available tax advantaged space.
Appreciate any help!
Statistics: Posted by Fresh Air — Sun Jan 19, 2025 1:22 pm — Replies 2 — Views 257