@sankumar wrote:
Hello @DianeW777
Which employer plan will I be taxed from at that time of distribution?
Thanks in advance!!
You misunderstand.
When you take ANY 401(k) distribution it is taxed as ordinal income. The excess that stays in the plan is just part of the overall 401(k) value and is not separate. The only *additional* tax on the excess is in 2021 that you must add back into your taxable wages because excess deferrals cannot reduce your taxable income and must be added back in. That is what is meant as "double tax".
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
