Retirement tax questions

No.  You file the W-2 as it is.   You cannot correct a 2020 W-2 after December 31.  2020 is over and what happened cannot be changed.

 

You will receive a 2021 1099-R in Jan, 2022  that will have to go on an amended 2020 tax return to report it. 

 

It is not an early withdrawal, it is a return of contribution that was excluded from your 2020 income so yiu are not paying tax on it, and the 1099-R will add it back so it can be taxed.    Any earnings on the excess removed in 2021 will be reported on a separate 1099-R that goes on your 2021 tax return  next year.

 

For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf

 

 

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**