I was working at two jobs during last year and between the two jobs, I over contributed the max on my 401k. How do I back out the extra amount to avoid a penalty? I'm not sure how to account for that on my 1040. Any ideas?
Contact the administrator at one plan or the other, presumably the plan that gives you a lower matching percentage if they're not the same. Tell them you've made an excess deferral of (amount) because you have two jobs. They will return it to you and issue you a new W-2 since that excess is no longer pretax money.
Do this right away, so that they have adequate time to return the money before 15 April.
If the returned amount contains earnings, you'll need to declare those as income.
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