Retirement tax questions

Correct, if an individual defers more than this limit for 2020, the excess deferral amount plus earnings must be distributed by April 15, 2021. The date to remove excess salary deferrals has not been extended (IRS). Excess salary deferrals not withdrawn by April 15 are taxable in 2020 and again when withdrawn. Please see 2020 Publication 525 Page 11 for additional information.

You will have to include the excess deferral on your 2020 tax return by following the steps below. Then when you withdraw the amount at a later time it will be taxable again.

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Scroll  down to "Less Common Income" and click "Show More"
4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
5. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
6. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
7. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
8. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
9. On the "Any Other Earned Income" screen enter "2020 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".