Hi Everyone,
I would like some guidance on how to handle an Excess Contribution to my Self-Employed 401K.
In early April 2020, I inadvertently made an excess contribution of $5,000 to my self Employed 401K - Profit Sharing account for tax year 2019. I filed my 2019 tax return on April 15th 2020.
Three weeks later, in May 2020, I discovered the Excess Contribution, and had the Plan Administrator make a withdrawal of the $5,000 plus $33 earnings under EPCRS program to correct the Excess Contribution. I also filed an Amended 2019 tax return, indicating the $5,033 distribution, and paid the tax.
I just received a 2020 1099-R indicating the $5033 distribution in Box 2a, indicating that it is a Taxable Distribution. Box 7 indicates correctly that this is a correction under EPCRS.
Since I filed an amended 2019 tax return, I have already paid the tax on the $5033.
The problem is that I now have a 2020 1099 R indicating in box 2a that the $5033 is taxable in 2020. I don't want to pay tax on the same $5033 distribution twice.
I checked with the 401K Brokerage, and they will not modify the 1099R to indicate this distribution was related to the prior tax year.
Any suggestions are greatly appreciated!
