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Retirement tax questions
If this was an excess deferral to the traditional account in one of the 401(k) plans, you must report the excess on your tax return as taxable income. If you fail to obtain a timely corrective distribution from one of the 401(k) plans, the excess amount will be taxed a second time when eventually distributed. Double taxation is effectively the penalty for failing to obtain the correction.
‎January 3, 2024
3:14 PM
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