For 2021, the total amount one could put into 401k with company match and everything included was $58k. However, it appears my wife was allowed to put in $59.2k by her employer. She does a bunch of post-tax 401k that we roll over to Roth and I thought they would limit at end of year when she reached $58k limit but it appears they did not. Wife has ticket opened with HR (waiting for over a week now) to see what they say and how to avoid in the future.
To be clear, for pre-tax amounts, she was stopped at $19.5k so that is not the issue. The issue is that with pre-tax, company match and her after tax contributions included, she went over the $58k limit.
The main problem is that 3-4 times a year she rolls over the post-tax amount to an external Roth IRA. This was done before we realized the issue so basically the post-tax money from 2021 is already gone out of the account (although she has 2022 money in there). The total amount is not listed anywhere on the W2 and we only discovered it by searching through her 401k site and showing all transactions for 2021 to get the total.
Every website I find gives steps when the pre-tax amount goes over but not details when only the total amount was over the limit. Any idea what we should do? Part of me says be quiet and hope nobody notices but not sure if that is the best answer.
Also, I assume this was an error on the part of her company’s HR team or 401k provider since everything was through that one company (no job changes).