Sorry, but it is too late to remove it at all. April 15, 2020 was the cut off date. You will not receive any 1099-R, but the excess is still taxable income on your 2019 tax return.
Because it must remain in the 401(k) plan as before-tax money, that means then when finally distributed as part of a normal 401(k) distribution, it will be taxed again. That double tax is the penalty for not having it removed in a timely manner.
For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf
Excess deferrals. If your deferrals exceed the limit, you must notify your plan by the date re-quired by the plan. If the plan permits, the ex-cess amount will be distributed to you. If you participate in more than one plan, you can have the excess paid out of any of the plans that per-mit these distributions. You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. The plan must then pay you the amount of the ex-cess, along with any income earned on that amount, by April 15 of the following year.
You must include the excess deferral in your income for the year of the deferral. File Form 1040 or 1040-SR to add the excess deferral amount to your wages on line 1.
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 contri-bution).
Because you will never receive a 1099-R, it cannot be entered with a 1099-R but there is another way to do that.
Enter this way:
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
This will add the taxable excess to your 2019 wages on the 1040 line 1 as required.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
