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Retirement tax questions
Yes, you will have to include the excess in your income with the steps below.
Yes, since the excess isn’t withdrawn by April 15th you will pay taxes twice on the excess deferral left in the plan. This happens once when you contribute it (with the steps below) and again when you receive it as a distribution (include the Form 1099-R in your income).
Since you are penalized by paying taxes twice, you can decided if you want to remove the excess now or at a later time.
- Click "Federal" from the left side of your screen
- Scroll down to "Less Common Income" and click "Show More"
- Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
- Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
- On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
- Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
- On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
- On the "Any Other Earned Income" screen enter "2021 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".
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April 14, 2022
4:03 AM