You can always file an amended return to pay for the excess 401k. The first question is do you need to file an amended return? Here are the scenarios that I see:
- If you had an excess 401k deferral and worked for one company the whole year, they should have included the excess in your wages and noted that you have contributions that were taxed. Some companies will do that but it is a small percentage- about 10% in 2020. This will prevent being taxed on the income when it comes back out due to the recorded basis.
- If you had an excess 401k deferral from working at 2 or more jobs, neither company is aware of the excess and it is up to you to include the additional income on your 2020 return. You will need to file the 1040X. I would save the paperwork for the amended return and see what the rules are when you are ready for a distribution. You may be able to claim that as part of the basis.
@krvenkat
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