Yes, if you do not take out the excess amount by April 15th, then you are taxed twice on the excess deferral left in the plan. Please be aware this is a separate deadline from the filing due date. Any distribution of the excess deferral after April 15th is a regular taxable distribution from the 401(k). You cannot claim that you already paid taxes on the amount.
The solution to avoid being taxed twice on a 2022 excess deferral is to make sure it was removed by April 15th, 2022.
If you cannot get the excess deferral distributed by April 15th then you might want to leave the excess deferral in the account until you are 59 1/2 (if your plan allows it) to avoid the 10% early withdrawal penalty.
@PeterB-2022
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
