Thanks again for your answer and clarification. Just to summarize my actions for 2019 taxes, I should go ahead and add the excessive 401k contribution to my 1040 income and do nothing else.
- No need to request distribution of the $547 from my IRA and receive 1099-R for 2019
- No need to do the calculation of the earnings and receive a 1099-R for 2020
- No need to file form 5329
- I will end up paying taxes on the $547 again when I start withdrawing money from my IRA at retirement age.
Thanks!
