dmertz
Level 15

Retirement tax questions

Opus 17 is correct.  The excess Roth 401(k) contribution and attributable earnings will be taxable upon eventual distribution, with the first amounts out being the excess and its attributable earnings.

 

See Designated Roth Contributions as Excess Deferrals in T.D. 9324 2007-22 I.R.B 1302:

https://www.irs.gov/irb/2007-22_IRB#TD-9324