A 402(g) refund is the return of excess 401(k) contributions you made above the IRS annual limit. If you contributed more than the IRS allows, you must request a refund to avoid double taxation and potential penalties. 

What Is an Employee Deferral Over-Contribution?

Each year, the IRS sets a maximum amount you can contribute to 401(k) plans. 

If you participated in more than one 401(k) plan during the year (for example, if you changed jobs or contributed to multiple employers’ plans), your combined contributions across all plans cannot exceed these limits.

If your contributions were higher than the limit, you made an over-contribution and must take action to have the excess refunded.

  • 2024 limits:
    • $23,000 for employee deferrals
    • +$7,500 catch-up if you were age 50 or older
  • 2025 limits:
    • $23,500 for employee deferrals
    • +$7,500 catch-up if you are age 50 or older 
    • +$11,250 catch up if you are 60-63 in 2025

Why You Must Correct an Over-Contribution

If you do not request a refund of the excess amount by the IRS deadline:

  • The excess amount will be taxed twice—once in the year you contributed and again when you withdraw the funds in retirement.
  • Additional IRS penalties may apply if the excess is not corrected in time.

How to Correct an Over-Contribution Through Your Plan Administrator (only available before January 1st)

If you realize you have over-contributed before the plan year ends:

  1. Notify your plan administrator of the excess contribution amount and whether it was Roth or Pretax.
  2. Your plan administrator will request that Ubiquity return the excess contribution.
  3. The refund will be processed back through your company’s payroll system.
  4. This ensures that the W-2s issued in January reflect the corrected deferral amount, so your tax forms are accurate.

How to Request a Refund of Excess Contributions After January 1st

To correct an over-contribution after the plan year has ended:

  1. If you need to correct an over-contribution to your Ubiquity 401(k) plan directly:
    1. Gather Required Information:
      • Copies of all W-2s for the year in question
      • Confirmation that your W-2s will not be adjusted
      • The excess contribution amount and whether it was Roth or Pretax
      • Your current mailing address
      • Acknowledgment of the $95.00 distribution processing fee
    2. Submit Your Request:
      • 📧 Email your request and documents to info@myubiquity.com
    3. Meet the Deadline:
      • Send your request by April 7, 2025 to ensure timely correction.
      • Requests received after April 15, 2025 may result in IRS penalties.

Need Help?

If you’re not sure whether you’ve over-contributed or need help requesting your refund:

  • Log in to your account and click the chat icon for 24/7 support
  • Or email us at info@myubiquity.com

We’re here to help you stay in compliance and avoid unnecessary penalties.