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Transactions / correction of 401(k) over-witholding
« on: November 05, 2017, 10:10:10 AM »
My 401(k) provider exceeded the cap on my annual contributions. To correct this, they issued a negative adjustment for the amount of the overage. However, the number of shares removed is at a share price that is different than the price at which the shares were originally purchased. Therefore, I cannot just modify the original transaction for a purchase of fewer shares, because it will result in a different number of total shares than what is actually in the account, producing a tracking error. I think that a separate, additional transaction is needed, similar to a sale, but non-taxable. A Return of Capital does not seem to adjust the share count.
Is this the right approach? If so, what type of transaction can I use to deduct shares from the account at a specified price, like a sale but non-taxable?
Is this the right approach? If so, what type of transaction can I use to deduct shares from the account at a specified price, like a sale but non-taxable?