No, you don't change your W-2 box 12 entry, enter it as shown on the W-2.
Yes, if you can't get it removed by April 15th then you can wait to remove it until you are 59 1/2 (if the plan allows that). The distribution will be a regular distribution and will be taxable income but not subject to the 10% penalty when you are 59 1/2.
1. Excess deferrals to a 401(k) are never charged a 6% penalty (this applies for IRA excess contributions) the "penalty" is if you don't remove the excess before April 15th you will be taxed twice on the amount.
2. Yes only the excess of $1,300 will be taxed twice. Once on your 2022 tax return with the instructions I provided in my previous post and then again when you take the distribution (reported on Form 1099-R).
3. Yes, the earnings will be taxable income.
@hjinhua415-gmail
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
