@angel888 wrote:
@macuser_22 @kberry7211
Tax deadline (normally is April 15) is different from withdrawing the over contributed 401k (March 1st). I checked a few times last year 2021 since I had the same situation (2 jobs, over contribution in 2020). The 1st person I got from Fidelity told me to do it by tax deadline. When I did it before the tax deadline but after March 1st, another 2 people in Fidelity told me that I missed the deadline.
Fidelity kept telling me different things, so I am bounced in between my 2020 employer and Fidelity. Fidelity told me that only employer can take out my overcontributed money, but then my employer told me only Fidelity can do so. So now in 2022 after 2021 tax deadline, I still couldn't do anything nor know what to do.
What would be happened if I don't withdraw the over contributions?
Is is not "normally Apr 15", it is defined in tax law as April 15 of the year following the year of the excess deferral and the law has not changed in many years.
If the April 15 date is missed then you just leave the excess in the account and pay the tax on it for the year of the excess as follows.
Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
This will add the returned excess to your wages on line 1 of the 1040 form
**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.**
