So, I do not think my question was answered properly at all or I am not following the responses correctly.
Update on May 5th:
1. I filed for an extension for my taxes on April 13, 2023 after I noticed I had an over contribution to my 401K.
2. Fidelity attempted to help me to fill out a return of excess form that in my plan stating that I needed to talk to Payroll from my employer to complete before April 15, 2023. This did not happen in a timely manner because they responded to me on April 25, 2023.
3. When someone from Payroll contacted me (through an online ticketing system, NO PHONE, LIVE CHAT OR EMAIL) they told me I have passed the date an had to contact the IRS.
4. I contacted the IRS and they were not helpful. They directed me to their website which is still the same confusing information I looked at previously.
5. I got full service with an accountant on TurboTax live because this was over my head.
6. The accountant spent 3 hours with me, filed my taxes by placing the over contribution total as 'other income' for my 2022 taxes and my return was accepted.
7. My next steps were to follow up with Fidelity to remove the excess and the total earnings for 2022.
8. May 5,2023 - I called Fidelity and the supervisor told me that since I am past the due date to get the return excess, I can not remove it. I will have the tax penalty next year and receive a 1099-R. I should only be paying for that penalty next during next year's taxes and it will not be reoccurring. Is this true???
I just want to make sure I am doing the right thing and believe the supervisor at Fidelity was telling me that I will now just wait till next year to pay the tax penalty and no longer can remove the excess.
@dmertz @Opus 17
