Need some 401k/tax/payroll help

Jackburton

Jackburton

Gone Fish'n
Going to try and make this as simple as possible. I was reviewing my 401k and noticed Prudential took about 4K spread over my investments and moved it from pretax to after tax, not to be confused with Roth. I had contributed the max, 18k last year with about 3/4 into pretax and 1/4 into Roth. I've already done my taxes for the year and can't figure out why they would move money like this, it's never happened to me before. This transaction took place on 3/14, and just recatagorized it from pretax to after tax, pulling from the investments in the % that was contributed then re investing back in. This is the only time I've ever had anything like this and have been maxing out my 401k to the limit every year.

I contacted Prudential Teamsters 401k but they aren't open till Monday and I'm concerned I'll have to do an amended return if I have to pay tax on the money they moved in order to make it really after tax money.

Any ideas?
 
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Jackburton said:
Going to try and make this as simple as possible. I was reviewing my 401k and noticed Prudential took about 4K spread over my investments and moved it from pretax to after tax, not to be confused with Roth. I had contributed the max, 18k last year with about 3/4 into pretax and 1/4 into Roth. I've already done my taxes for the year and can't figure out why they would move money like this, it's never happened to me before. This transaction took place on 3/14, and just recatagorized it from pretax to after tax, pulling from the investments in the % that was contributed then re investing back in. This is the only time I've ever had anything like this and have been maxing out my 401k to the limit every year.

I contacted Prudential Teamsters 401k but they aren't open till Monday and I'm concerned I'll have to do an amended return if I have to pay tax on the money they moved in order to make it really after tax money.

Any ideas?
Click to expand...
By chance did you put more than the 18k into the pre-tax and Roth?
 
oldngray

oldngray

nowhere special
Jackburton said:
Going to try and make this as simple as possible. I was reviewing my 401k and noticed Prudential took about 4K spread over my investments and moved it from pretax to after tax, not to be confused with Roth. I had contributed the max, 18k last year with about 3/4 into pretax and 1/4 into Roth. I've already done my taxes for the year and can't figure out why they would move money like this, it's never happened to me before. This transaction took place on 3/14, and just recatagorized it from pretax to after tax, pulling from the investments in the % that was contributed then re investing back in. This is the only time I've ever had anything like this and have been maxing out my 401k to the limit every year.

I contacted Prudential Teamsters 401k but they aren't open till Monday and I'm concerned I'll have to do an amended return if I have to pay tax on the money they moved in order to make it really after tax money.

Any ideas?
Click to expand...

Investment accounts don't have to sent out tax statements by the end of January like most other statements. I always get my last statement around mid March so wait to do my taxes. I got the statement and did my taxes last week.

That being said only transactions taking place before the end of last year should be on this years taxes. Was yours just some kind of accounting correction? If so then you might need to file an amended return.
 
Cementups

Cementups

Box Monkey
I do a post tax 401k. It basically a glorified savings account. I can take it out at any time and only have to pay taxes on any interested I may have earned.
 
Jackburton

Jackburton

Gone Fish'n
oldngray said:
Investment accounts don't have to sent out tax statements by the end of January like most other statements. I always get my last statement around mid March so wait to do my taxes. I got the statement and did my taxes last week.

That being said only transactions taking place before the end of last year should be on this years taxes. Was yours just some kind of accounting correction? If so then you might need to file an amended return.
Click to expand...

This was the Teamsters 401k plan administered by Prudential. The dollars didn't move out of the account, just the pre tax money was moved to an after tax category, and just 4kish out of 18k. The money was moved back into the same investments they were taken out of.
 
Jackburton

Jackburton

Gone Fish'n
Cementups said:
I do a post tax 401k. It basically a glorified savings account. I can take it out at any time and only have to pay taxes on any interested I may have earned.
Click to expand...
The problem I'm seeing is that if they moved pretax money into that after tax category, taxes will be owed on that money, including any growth, for tax year 2015. Intrestinv part is they only took from the pretax, not from my Roth portion I contributed during the year.
 
Jackburton

Jackburton

Gone Fish'n
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oldngray

oldngray

nowhere special
Jackburton said:
This was the Teamsters 401k plan administered by Prudential. The dollars didn't move out of the account, just the pre tax money was moved to an after tax category, and just 4kish out of 18k. The money was moved back into the same investments they were taken out of.
Click to expand...

It looks like your issue is pre tax money moving into a post tax plan. Normally retirement plans issue statements that are mostly just informational but switching money could change your taxes. Not a big difference but it will still be reported to the IRS.
 
Jackburton

Jackburton

Gone Fish'n
oldngray said:
It looks like your issue is pre tax money moving into a post tax plan. Normally retirement plans issue statements but mostly just informational since your taxes are involved. Switching money could change your taxes. Not a big difference but it will still be reported to the IRS.
Click to expand...
Two things, I never requested they move anything and that move will cost me around 1k in taxes in an amended return. I never received an notification they were doing this.
 

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