In 2022, my wife switched employers and accidentally over-contributed to her 457 plans. Combined for both employers, she contributed $21,006.68 (W-2, box 12, code G) to the tax-deferred 457. To the 457 Roth (W-2, box 12, code EE), she contributed $1,624.97. This makes for a total tax year 2022 457 contribution of $22,631.65.
1) I understand that the excess is reportable on our 2022 return, but because it consists of both tax-deferred and Roth, that is where I am confused. Is it simply $2,131.65 is reportable as other income 1040 line 1h?
2) The excess to the tax deferred ($21,006.68 - $20,500 = $506.68) and the Roth $1,624.97 together total $2,131.65. In essence, she's already had payroll taxes taken out of the $1,624.97 since it was a Roth contribution. If we report it as excess, then the $1,624.97 will then be taxed again.
I just don't understand if it is handled differently since contributions were made to both tax-deferred and Roth.
From reading the IRS regulation and here at the community, I understand that if/when Fidelity reports any earnings on this excess contribution, that it is reportable for tax year 2023, correct?
