Hello experts and users who had similar experience (@dmertz @sunandsand ) :
I have a very similar situation as covered under Excess contribution to a 401k then rolled over into an IRA EXCEPT that my entire 401K account rolled over to another 401K plan that belongs to the company which acquired my employer. I read thru the entire post which was super helpful and started to amend my 2023 tax return in TurboTax. I am wondering if you can help with questions below:
1) Is it correct for the excess amount (about $6000 that is now considered ineligible to roll over to any qualified plan) to appear in "Line 5b - Pensions and annuities Taxable Amount" on Form 1040. I initially thought the amount would be added back to Line 1a.
2) Does anyone happen to know what could/should happen to the excess amount that got roll over another 401K plan? Will I need to pay taxes again when I withdraw the excess amount from 401k thru no fault of my own?
3) I informed my new 401K administrator about the situation who stated that they are working with the last 401K administrator to determine what to do with the excess amount (as many employees have similar issue). Shall I go ahead to file 2024 tax return now or wait until everyone has a clearer picture of what to do with the excess amount? My concern is that if I file 2024 tax return now, I might have to amend it later in 2025 if I receive a 1099-R from the new 401K administrator for the withdraw.
Thank you in advance for everyone's time and assistance!!
Best
Tammy
