: What to do if I get refunded by my 401k for being considered HCE? If my employer gives back some of the money I put away on my 401k because I am considered a HCE, can I turn around and put it back into an IRA to avoid paying

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Yes, provided you're not over the IRA deductibility limit as well. – JoeTaxpayer? Aug 4 at 18:02

Note that if you get refunded for excess contributions, it usually happens in the following year, in which case it doesn't affect the year where these contributions occured -- rather, the refund counts as taxable income in the year you received the refund. – user102008 Aug 11 at 8:11