chj63
Level 2
03-28-2022
04:00 PM
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Taxpayers are married filing joint. Both employers contributed $3550 for self only and $8025 for spouse with family plan. Spouse is over 55. Since $10625 is over maximum allowed for family plan amount of $7200, is there any remedy to avoid tax on excess contribution of $3425?
Please help. Thank you. Hwan
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rbynaker
Level 13
03-28-2022
05:00 PM
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Corrective distribution by 4/15. Be sure to read up on it. Also if they've already spent it, there is a provision that the penalty is based on the lesser of the excess contribution or the balance in the accounts.
chj63
Level 2
03-28-2022
05:44 PM
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Thank you for your pointer. I will read up on it and will come back if my solution approach is correct.
Meantime, thank you. Hwan
