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Retirement tax questions
Yes, you can’t include the excess amount in your cost basis if you get the excess deferral for 2022 distributed after April 15th, 2023. In this case, you can't claim that you paid already taxes on the excess deferral amount (by adding it to your wages) because it has to be taxed twice.
But it seems this doesn't apply to you since you are getting the funds returned before April 15th.
Yes, you will add $2,131.65 on line 1h of Form 1040 with the steps provided previously.
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April 5, 2023
2:35 PM