BaseballFan4Ever
New member
I recently learned from my Human Resources Department that my company sponsored 401K plan failed a discrimination test. I am classified as a HCE "Highly Compensation Executive" in the company; therefore after doing the math it looks like I will receive a refund check of over $5,000 in January. So far I have contributed over $10,000 to the plan. I immediately stopped all future contributions. I also increased my wife's 401K contributions to the Maximum of 30% of her income.
I will earn about $125,000 this year and my wife will earn about $100,000 this year.
How can I offset this loss and avoid taxes? Will I have to do an amended return for 2010? or can I file this additional income on my 2011 return? What should I do with the refund?
I will earn about $125,000 this year and my wife will earn about $100,000 this year.
How can I offset this loss and avoid taxes? Will I have to do an amended return for 2010? or can I file this additional income on my 2011 return? What should I do with the refund?