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Ask the Hammer: What Counts as an Over Contribution?

Jeffery Levine, chief planning officer at Buckingham Wealth Partners, answered a  question about how a reader can prevent an over contribution.

"I am under age 50 and plan to contribute the maximum allowed in 2021 to my 401k plan, 19,500. My employer also matches my contribution. Does that match when combined with my elective deferral mean that I've over contributed? And if so, what should I do to correct the problem? And what's the penalty, assuming it is a problem for not correcting it."

That is the question Jeffery Levine answered in this installment of Ask the Hammer.

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