Hello,
I mistakenly over contributed to my 401k last year (2022), as I started a new job in April and did not calculate the amount already withdrawn by my previous employer. When I filed my taxes this year (TurboTax) it flagged me that I over contributed. This was at the beginning of April 2023. I brought it to my employers attention, but they were not able to resolve this in time, so I filed my taxes as normal. After 2 months, the 401k company finally refunded me my money, but taxed me the 10% early withdrawal, and the taxes on the money (based on my state and fed tax brackets). I basically received half of the 401k money ($6k). My question is, do I need to amend my return and report this $6k as income, or do I add it to my return in 2024? The 401K company is telling me I paid taxes on it, so to do not have to report it. Want to be certain.... Thank you for your advice.
