Hello TT community,
I feel like this is a semi-frequent question but I'm still struggling with the answer.
Issue/History: Numbers rounded for easy reading.
I transferred employers in 2022 and had maxed out my pre-tax 401K with Original Employer A. New Employer B contributed $2000 pre-tax to my 401K by accident on 12/30/22, Which didn't hit Fidelity until 1/4/2023, so it's causing some confusion. I have gone through the process to show Fidelity both of my W2s, and they have issued a Return of Excess Distribution for said $2000 on 1/25/2023. Since this is a net new 401K, the only thing in there was my Employee match (say pre-tax $200 to make it easy), and my $2000 pre-tax contribution. When they sold funds to disburse my $2000 on 1/25/23, they had to sell less shares than what my ($2000) portion of the 1/4/23 purchase was. The delta amount logged into the transaction ledger as a "change in market value" was $100 on the 1/25/23. Therefore I would imagine I have $100 of earnings. Seems simple.
With the $2000 check, Fidelity sent an accompanying letter stating "The full amount of excess deferral (less the Roth, if any, as noted in the tax information section of this statement) is taxable to you in 2022 and the earnings, if any, are taxable to you in 2023. "
That jives with my understanding and the IRS Tax Assistant that I need to add $2000 to my 2022 income. I've also read that I perhaps need to get a corrected W2. My Employer says they do not correct W2s for this situation and that I will receive 1099s to address it from a tax situation.
So now I have outstanding issues I'm trying to crowd-source:
1) Fidelity says they do not create 1099-Rs until 2024 and that they are taxable in 2023 as that is when they are requested to be disbursed even though their document says 2022... Do I attempt to do this in TurboTax somehow without the form? (if so, instructions would be awesome! please & thank you).
2) Fidelity says I have $0.00 for earnings on $2000 amount. They are double checking on this after I asked about it to see if it was calculated correctly. My understanding is this also needs to get disbursed now, but it's taxable in 2023 and, for which I would receive a 1099-R related form in Jan 2024. Is this correct and am I on the right path?
3) Do I need to push for a corrected 2022 W2 from Employer B?
4) Should I work on just getting the amounts disbursed, and don't do anything tax reporting wise until I get all these forms next year?
Also/Related - I swore there was a way to call TT/Intuit to ask for free help for a situation like this if you purchase the downloadable/desktop product. Does that still exist or do I have to upgrade to different edition?
Thank you so much!
