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The amount she can defer to both plans can’t exceed her individual limit for the year.
If she does go over and the excess isn’t returned by April 15 of the next year, she could be subject to double taxation:
If she is going to exceed the total then she can let them know now and put her money in a Roth outside the work plan for the remaining year (up to the ROTH allowed limit).
Then she just needs to let them know her limitation and wait for the new year.
There is just one month left.
I sincerely ***** ***** has been helpful.
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You are most welcome.After tax non ROTH would be her only option. She will not receive any tax benefit now but at least she can contribute.
If it is not a 401k or an plan in the company that is taken out before taxes are calculated.
Tell her to ask them. Some employers do have after tax 401k contributions but they are still limited to the annual amount.
Yes, by taking out the money before April 15th
That may be the best for now.
Thank you for the bonus, that was very generous of you.