Hello @DianeW777
I have a similar situation where my overall deferral for 2021 went above the limit by $500. I have NOT filed my 2021 return yet. But in my case, the 401K provider will NOT be able to refund the $500 before the tax filing deadline (April 18th 2022) - since they need more time to process the refund.
Do I have to show $500 as my income in my 2021 return?
Is that done by manually creating a 1099-R with Code 8 for $500?
Do I need to submit form 5329 and pay a 6% penalty in 2021?
Will my 401k provider send me 2 1099-Rs (Code P and Code 8 in 2023?
Do I have to amend my 2021 return? Or do I just enter that 1099-R in my 2022 return?
Thanks!!
