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The deadline to remove an excess deferral was April 15th, the date to remove excess salary deferrals has not been extended (IRS April 8th). Since it is after the deadline you can leave the excess in the account but you will be taxed twice on the excess amount. Once when you take the distribution and once on your 2020 tax return.
Please follow the steps below to report the excess deferral:
The deadline to remove an excess deferral was April 15th, the date to remove excess salary deferrals has not been extended (IRS April 8th). Since it is after the deadline you can leave the excess in the account but you will be taxed twice on the excess amount. Once when you take the distribution and once on your 2020 tax return.
Please follow the steps below to report the excess deferral:
Thank you. This was perfect.
just think of it as a non-deductible contribution to your 401k, but no hassles with Form 8606.
It will grow tax-deferred.
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