With 1 week to go we now need to consider the scenario that refund won't be issued or will be issued past 7/15, so most of the answers above won't apply.
What's being suggested of "do not take refund " directly contradict with the example TT gives in the software (READ last sentence of paragraph 1). This is very confusing.
Also is the double tax scenario for past the tax deadline refer to:
1. Tax in 2019 for excess. 2. Tax again when retire and take distribution
OR
1. Tax in 2019 for excess 2. Tax again in 2020 because you got a refund 1099R from Fidelity as income.
Which of above is "Double Tax"?
"Example 2:
Assume same information as Example 1. But Jessica doesn't discover the overpayment until November 20, and she had already filed her 2019 return. She notifies the plan administrator immediately, and she withdraws the excess on December 5.
Jessica must pay additional taxes on the overpayment because she didn't withdraw the funds by April 15. She amends her 2019 return to report the overpayment as if she received Form 1099-R (same as Example 1) and pays the additional taxes.
On her 2020 return, Jessica enters the forms she received from the plan administrator. Only the earnings on the overpayment will be added to Jessica's 2020 income."
