You will have to report the excess:
1. Under Less Common Income and click "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
2. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
3. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
4. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
5. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
6. On the "Any Other Earned Income" screen enter "2024 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".
Unfortunately, you will have to pay tax on the same amount when it is distributed.
Excess not distributed.
If you don't take out the excess amount, you can't include it in the cost of the contract even though you included it in your income. Therefore, you're taxed twice on the excess deferral left in the plan—once when you contribute it, and again when you receive it as a distribution (unless the excess deferral was a designated Roth contribution). Excess not distributed.
@salvadorvillalon54
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