I’ve never experienced a situation like this before, so I’m trying to understand my options. Last year, I contributed $22.5k to my 401(k), but today I received two checks in the mail totaling $20,000. After contacting Fidelity, I was informed that Centene failed the nondiscrimination testing requirements for its 401(k) plan, which resulted in the funds being returned.
What steps should I take to address this? Do I have any options to dispute or challenge the decision? Does this mean that my retirement contributions from last year were essentially wasted, or will I still receive some retirement benefit from them?
I also came across another post suggesting that Fidelity may allow me to keep the funds in the account if I pay a 10% penalty. Is that actually an option?
I would appreciate any guidance on the best way to handle this situation and minimize the financial and retirement impact.