Had an excess ADP 401K contribution of $7000 in 2021, but got a 1099-R in 2022 with code 8 in box 7. ADP issued the withdraw check on Dec 31, 2021. But the actual auto deposit by ADP happened on March 30, 2022.
So, I ended up with additional income of $7000 in 2022, instead of 2021, since the code in box 7 of 1099-R issued by ADP is 8. Did ADP make an error, shouldn't the code in box 7 be P (which means tax in previous year - 2021)?
If indeed ADP should have code P, does that mean I have to admend both 2021 (still OK to admend since I filed 2021 late anyway) and 2022? Do I have to pay panelty in 2021 for additional tax due because of ADP error?
