@Opus 17 @macuser_22
oh, thank you very much for taking the time helping me clarifying these! Now I see why different people from Fidelity told me different things -- I wish Fidelity retirement plan support can get some solid training so they don't mislead client (I originally overcontributed because Fidelity told me in 2020 [when I changed to 2nd job], that since both my 401Ks from the 2 companies were with Fidelity, so it would "automatically" go backdoor to post-tax contribution; apparently it did not. Then different follow up calls from 2020 to 2021 to 2022, I never got the same answer from 2 different people)
Please correct me if I understand these wrong, and with additional questions:
1.) tax official deadline is always April 15th, despite what adjustment may be made that year (e.g., COVID, Easter Friday, weekend)
2.) deadline to withdraw an over contributed 401K can depend on an earlier date by the retirement plan
3.) it seems that my employer and Fidelity can not help me withdraw the overcontributed 401k amount, so this would stay in my 401k
4.) In my tax return for 2020, TurboTax did show a box saying that I had exceeded the contribution limit
Question: I guess TurboTax did not tax me for that amount (~$5k)?!
5.) I will do the amendment for 2020, by following the instruction @macuser_22 provided, to report "Any other income" under "Miscellionious Income" (by going through steps), that will be added as my 2020 income then I will be taxed for the additional income of ~$5k
6.) when I withdraw my 401k, there are 2 scenarios:
a.) withdraw the exceeded amount of ~$5k, say, in 2022 (if I can find someone to help withdraw it)(I already filed my 2022 return by April 18 deadline this year), then I will have to amend my 2022 return --> repeat Item (5) above.
Question: what if that $5k now is only $4k? Would Fidelity calculate it for me? or IRS does not count the loss but the original exceeded contribution amount?
Question: one guy from Fidelity told me (in 2021, after tax deadline), that I will be taxed EVERY YEAR until I take out the exceeded contribution. What does it mean? But Fidelity is not helping me to withdraw it nor my employer for over 1 year now.
b.) withdraw the exceed amount of ~$5k after age of 59.5 years old. Then I will be taxed the 2nd time.
Questions:
i.) any amendment I should do, in addition to the 2020 amendment (the year I over contributed)? at the year I first withdraw?
ii.) if the original $5k grows into $10k, the 2nd time to tax an overfunded 401k will be based on $5k or $10k?
iii.) what if I roll over 2020 employer's 401k to a traditional IRA, would it affect the process/actions to be taken?
