Hi.
3/2024 received check and letter from my 401k administrator stating that in 2023 I was considered an HCE and XXX amount of my 401k contribution was being returned to me. At that time, I did not know that it was not applicable, and I deposited said check into my bank account.
01/2025 received 1099-R with regards to the above return of this 401k contribution.
Facts:
-2023 gross earnings per my W-2 was $147,782.07
-The requirement to be considered an HCE in 2023 was $150,000
-In 2022, I was classified as an HCE by my employer, which was the correct classification, but employer never removed this classification, if they were supposed to do that.
Current status:
1) I have reached out to my 401k administrator and HR and they keep stating the other party is responsible to correct this.
2) I have since sent a two unanswered lengthy emails to my HR rep stating that I need to be reclassified as a non-HCE for 2023, I'd like to return XXX amount to my 401k, have them file a corrected 1099-R showing no return of 401 contribution, and contact/file said corrections with IRS accordingly.
Questions:
1) How do I handle this if my HR or 401k administrator don't fix things?
2) If things are not corrected, and I have to file this erroneously prepared 1099-R, I will be paying taxes on that income. Is it better to do that and file an amended return after-the-fact, or file some miscellaneous form and state to the IRS that I was not an HCE and don't owe taxes on this returned amount of 401k contributions?
3) Who is the correct party to correct this - my employer HR/accounting dept., or the 401k administrator?
Thanks for any help.
