I am in a similar position as @JimFisher
Contributed $15k with Employer A, and then left to join employer B where I contributed the min to take advantage of the employer match and that added an additional $9k . In total I contributed $24k for 2022. Was aware of the situation the whole time (after I quit ER A, figured the 6% match ($9k) from employer B was worth more than the taxes on excess contributions. I was under the assumption that this can easily be handled upon filing my tax returns but seems more complex than that.
Employer A refused to refund the excess and said it must be done by Employer B. Employer B is able to do it but I will lose the value of the Employer match ($3.5k as well).
Given that I missed the April 15th deadline, what's the best option for me at this point. I filed an extension on my 2022 tax return until I figure this out. From a tax perspective whats more beneficial to me now:
1. Have employer B process the $3500 refund and reissue 2022 W2 (i lose the $3500 ER match)
2. Capture the $3500 as other income in my 2022 taxes and submit the return as outlined as one of the options earlier for Jim.
3. What happens if I do nothing and submit the return, will system flag it as excess 401k contributions?
Thanks for your help.
