@Marina25 wrote:
I did not get anything withdrawn.
Perfect. Your situation was correctly handled as far as I can tell, although #8 is a little confusing to me, possibly you or the Fidelity rep was confused as well.
For 2022, your tax return was handled correctly. The excess deferral was added back your taxable income. There are no further penalties to worry about. When you withdraw the money in retirement, you will pay income tax on all the withdrawals, you don't get an adjustment for the fact that you paid income tax in 2022 on part of your contributions because they were considered excess.
For 2023, you will not get a 1099-R if you did not withdraw any money. There are no further penalties for leaving the excess in the account. The only "bad" consequence is that you will end up paying income tax on that money twice, once in 2022 because it was excess and not removed; and once in the future when you withdraw it in retirement or for any other reason. (If you had successfully withdrawn the excess before the April 15 deadline, along with the earnings, that would be reported and taxed. But you didn't make the withdrawal, so you are finished, the situation is closed.)
