Thank you for the clarification on how the double tax works.
Just one more thing - this thread (401k overcontribution) indicates that when the excess deferral is returned on time, the W-2 Box 12 Code D amount should be corrected to show there is no excess contribution. However, in the case that I don't have the excess deferral returned by April 15th, do I still make this adjustment or should I leave the amount as is? Will this flag an error when I'm doing the filing?
