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Get your taxes done using TurboTax
You would need to include any earnings on your 2020 taxes from the excess. The IRS states:
Timely withdrawal of excess contributions by April 15
- Excess deferrals withdrawn by April 15 of the year following the year of deferral are taxable in the calendar year deferred.
- Earnings are taxable in the year they're distributed.
- There is no 10% early distribution tax, no 20% withholding and no spousal consent requirement on amounts timely distributed.
from 401(k) Plan and 401(k) Fix-it Guide show (More). Apply these to you:
- Your withdrawal was by April 15 so it was taxable in 2019 and included on that return.
- Earnings from the excess contribution will be reported and taxable in 2020.
- No 10% penalty
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‎January 20, 2021
4:46 PM