@TaxTechno wrote:
My employer (plan administrator) says that they cannot distribute the excess 401k contribution because they have a cut-off date of 8th April. How should then I report the excess 401k contribution for 2021 or should I just wait until 2022 tax return and amend 2021?
You will not receive anything in 2022. You report it now on your 2021 tax return this way.
(There are several screens to click through to get to the right place)
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
This will add the returned excess to your 2021 wages on line 1 on the 1040 form as required.
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.**
