Get your taxes done using TurboTax

Since you did not take out the excess amount by April 15th, you are taxed twice on the excess deferral left in the plan.  This happens once when you contribute it (with the steps below on your 2021 tax return) and again when you receive it as a distribution (receive and report Form 1099-R). You cannot include the excess amount in the cost of the contract even though you included it in your income. Since you are taxed twice on the excess you can leave the excess in the 401k for now. 

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Scroll  down to "Less Common Income" and click "Show More"
4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
5. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
6. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
7. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
8. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
9. On the "Any Other Earned Income" screen enter "2021 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".

@mvbarv