What Happens if One Has Excess Contributions?

Q. What happens if one has excess contributions?

 

A. If, after checking actual contributions, one determines that there is excess contribution, the first thing to do is identify the type of excess you have. Excess contributions to a 403(b) account are categorized as either an excess annual addition or an excess elective deferral.

 

Certain excess contributions in a 403(b) account can be corrected. The effect of an excess 403(b) contribution will depend on the type of excess contribution.