DanaB27
Expert Alumni

Retirement tax questions

To confirm, this wasn't an excess to a regular 401(k) but instead a Roth 401(k)? Contributions to a Roth 401(k) have been already taxed and therefore you would not have to add the excess deferral to your wages.

 

"If the distribution was for a 2022 excess deferral to a designated Roth account, your Form 2023 Form 1099-R should have codes B and P in box 7. Don’t add this amount to your wages on your 2022 return" (Pub 525).

 

If you had only a Roth 401(k) then would have to amend your 2022 return to remove the excess deferral after your return has been processed. I'm sorry for the miscommunication. 

 

@vijayar 

 

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