dmertz
Level 15
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Retirement tax questions

1.  To avoid a penalty and double taxation of the excess contribution for 2023, Yes, a return of the excess 2023 contribution must be obtained.

2.  Yes, the 2023 federal income tax return must be amended regardless of whether a return of excess 2023 contribution is obtained.

3.  No, the employer does not change the W-2 under these circumstances.

4.  Assuming that the filing of the 2023 tax return was timely, the deadline to obtain a return of the excess contribution made for 2023 is October 15, 2024, otherwise there will be an penalty on and double taxation of the excess amount.

5.  Generally, Yes, because the required addition of the excess amount to 2023 federal AGI will likely increase taxable state income.

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