Add position: relative;
to #over
#over {
width: 600px;
z-index: 10;
position: relative;
}
#under {
position: fixed;
top: 5px;
width: 420px;
left: 20px;
border: 1px solid;
height: 10%;
background: #f0f;
z-index: 1;
}
<!DOCTYPE html>
<html>
<body>
<div id="over">
Hello Hello HelloHelloHelloHelloHello Hello Hello Hello Hello Hello Hello Hello Hello Hello Hello
</div>
<div id="under"></div>
</body>
</html>