Thank you for explaining how it gets double-taxed.
"The corrective distribution must include the amount of the excess deferrals, along with amounts earned on the excess deferrals"
I get it that the excess contribution has to be returned to me and that the W-2 box 1 wages has to be increased by that same amount. I'm confused by the reference to "amounts earned"? Does that mean that I have to figure out exactly when in the year the amount contributed went over $19500 and then determine how much it generated in invested income? I hope I'm misinterpreting it because that would be difficult to do.
