I am in similar situation but I realized that I have excess 401K on 4/15 so I won't get it back before deadline. My amount is small - ~850. I am including that amount in my miscellaneous for 2022 so nothing to amend there. What would be a suggestion now. Should I ask to return it now which means I will pay for that amount again tax in 2023 + 10% penalty or should I wait for my retirement (>15 years remaining) and then withdraw. If I withdraw after retirement, from what I read in other replies, I will have to pay tax on this 850 in addition to anything I will pay on the amount I earn on top of this. I just won't pay 10% penalty. Any suggestions on what is better to do?
