In the same boat, did not inform the administrator before Apr 15th, and now they refuse to withdraw excess.
If everything was done before Apr 15, my understanding was, the excess funds would have been withdrawn
The excess funds would be taxed for tax year 2020, you will probably not get a 1099-R, so have to report it
And the earnings on this excess will be taxed 2021, for which you will get 1099-R
The question I have is, now that the excess funds cannot be withdrawn as it is after April 15
- I can report the excess as other income, and live with the double taxation, when I withdraw after retirement
- What about the earnings on the excess, is that okay that it will only be taxed when it is withdrawn in retirement, or this is something that has to also be calculated in for 2020 or 2021 and reported.
If so, how would you only calculate the earnings of just the excess?
Thanks
