So, I just want to make sure I have this straight. For a 2018 excess deferral that is distributed before April 15, 2019, I need to include the excess deferral amount on my 2018 taxes as other income through the procedure mentioned above. I will likely receive a 1099-R in early 2020 for this distribution that took place in 2019. I will then need to report the distribution of the earnings (or losses) on the excess deferral in my 2019 taxes. Is this correct? Do I receive one 1099-R for the deferral itself and and another 1099-R for the earnings (or losses) on that deferral? And how do I reconcile the 2018 tax return issue with my W-2's? The total 401k contribution between my two W-2's shows it to be in excess of the IRS limit. Do I need to manually correct my W-2 inputs to indicate that I have had the excess deferral distributed to prior to April 15, 2019 to avoid the early distribution and exceedance of IRS limit penalties?
I think I have the first part on how to address the 2018 and 2019 returns correct, but I am not sure what to do about the error that shows up on my W-2's. Please help!
