Hello,
My company has a generous 401k match so I don't want to remove the excess contributions. I've done the math and come out ahead even when double-taxed. I joined company B shortly after leaving company A in 2022 and despite both employers being under the same company for 401k provider (Fidelity), there was no automation put in place to stop contributions when combining employers. Thus, I've put around $2,000 more into my 401K this year (not counting match) than allowed by the IRS.
How do I handle this in Turbo Tax? I was told the excess deferral (let's say $2,000) would have to be put on 1040 line 1h. Or will Turbo Tax handle that automatically? I understand it's not a common situation as most people return the excess.
Source: If the total amount you (or your spouse if filing jointly) deferred for 2022 under all plans was more than $20,500 (excluding catch-up contributions as explained later), include the excess on line 1h.
