@TaxTechno wrote:
If the excess stays in the 401k account then I have to pay the tax on it every year. I missed the employer April 8th deadline. Can I still ask the employer to distribute for next year to me so that I don't have to pay the tax on the excess contribution year after year?
You do not. That is only for IRA's, not 401(k)'s.
Your excess contribution deducted from your paycheck was in the W-2 box 13 and was not included in the box 1 taxable wages so you have not paid tax on that money. That is why it must be included back in your wages on the 1040 line 1 do you pay the tax that was not paid when you earned the money.
It is just part of the 401(k) now and after retirement or you leave the company ANY distribution from the 401(k) is goint to be taxable income.
**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.**
