Double Taxation on Excess 401k Deferrals

If you move from one employer to another and both have 401k plans, you may end up with more than the current $18,000 (additional $6,000 if age 50 or older) maximum deferral for the calendar year. If you don't have the excess withdrawn by the non extended due date of the return, you have to pay taxes twice, once in the year of the excess and then in the subsequent year when the excess is given back to you. This is one of the few places in the tax code where they tax you twice on the same income. Don't let this happen to you.