Please be aware, if you do not take out the excess amount by April 15th, then you are taxed twice on the excess deferral left in the plan. This happens once when you contribute it and again when you receive it as a distribution. You can't include the excess amount in the cost of the contract even though you included it in your income.
If you receive the distribution before April 15th then you will get 2024 Form 1099-R codes B and P in box 7 for the returned excess contribution to the 403b Roth account. Don’t add this amount to your wages on your 2023 return.
If you had earnings you will get a 2024 Form 1099-R with code 8 and this has to be reported on your 2024 tax return.
If you receive the distribution after April 15th then the distribution will be taxable in 2024 and the custodian will issue you a2024 Form 1099-R.
Yes, if you’re in a 457(b) plan, then you have a separate limit. You can ignore the warning in TurboTax.
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