No, the amount of the excess is appearing on line 8 on Schedule 1 (1040) as Other Income because it was excess, not because it carried over.
I am presuming that the excess contributions were the result of employer contribution, which appears in box 12 on your W-2 with a code of W. Note that this number include both your employer's contributions and any contributions you made by payroll deduction.
Since the code W amount is removed from Wages in boxes 1, 3, and 5 before your W-2 is printed, you aren't being taxed on it. But if some of the code W amount was in excess, it has to be added back to income so that you can be taxed on it.
The system is working correctly.
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