I switched jobs in January 2022. Due to the one paycheck I had from my old employer in 2022 I overcontributed to my 401k.
- I contributed 1718 to employer A (roth 401k) in January 2022
- Throughout 2022 I contributed 20500 through Employer B (mix of roth 401k and pretax 401k)
- In February I requested a return of excess from everything I had contributed to employer A, and received $1407 (there were losses).
- I received a letter from the Fidelity (who managed both 401ks) advising that the full amount of the deferral (1718) must be included in my 2022 taxes and that I’ll receive a 1099R in January 2024.
I am confused about this since - being a roth 401k - it would already have been included in my employer’s w2 and taxed, but maybe this simply is advising me not to deduct the loss from the 2022 taxes.
Do I need to report anything in my 2022 taxes besides what would already be in my w2? If not, wouldn’t it look (to the IRS) as if I did the excess contribution and never removed it without penalty?
