Link to the removal of excess form TD Ameritrade sent me:
Over Contributed Too Much to Traditional (not roth) Solo 401k $1,800, need remove but account value $1,500 currently
Ok so I’m an idiot and estimated my employer profit share solo 401k contribution wrong and when I did my taxes it worked out that I can only contribute $100 to it, but I contributed $1,900 a few months ago.
Current account value is $1,500
I need to remove $1,800 and just have the $100 as contributed like my taxes say.
My broker has the removal of excess form but I just don’t know what to do in this situation I created for myself.
There are 2 spots on the form that confuse me.
The first is it asks for “the amount of excess to be removed (this is the principle amount)”
The second is an option further down on the page “client calculates earnings and a box to check ‘earnings’ or ‘loss’” and then enter the amount
directly below that still part of the same section it says “net excess amount to be removed (contribution amount plus earnings or losses” and it asks for a number to be entered.