1. Thanks for that I was aware of the 6% excise tax penalty per year. Too bad it's not paid at the end but I have to amend the 2022 return anyway so no big deal.
2. The early withdraw I wasn't sure about was if the excess distribution from the ROTH 401K that was considered ineligible for rollover should incur a 10% early withdraw penalty on that end at the time of rollover for tax year 2022.
3. I have read somewhere not to amend the W-2. However, the excess contribution is sitting right there for the IRS to see on my W2 record - which is of course how I caught it albeit late. I feel like it's a red flag target on my back as long as it's there which is forever if I don't amend. I would like to amend the W2 once the funds are removed to indicate the excess contribution is gone and the W2 will reflect the proper amount that should have been withheld/contributed in the first place. I know I indicate that on the roth distribution 1099 but this will never change the W2 and the last thing I need is an audit in 5 years over something I've already corrected. Is this allowed or is there any other way to deal with it on my official tax record somehow?
