Hello,
I am in a situation where my company did not stop my 401k contributions fast enough in 2023. We contacted them about the error and their response was to not issue us a new w2, cut us a check with the original amount plus the gains for the year before April 15th of 2024, and send us a 1099-R next year in 2025. I want to make sure or ask that in this situation, according the IRS website, we will not be double taxed since we are correcting the situation before April 15, however they state that the money will be counted as income towards the 2024 year. This would be acceptable to me since I obviously need to be taxed on the excess untaxed money however since they will not issue us a new w2, I wanted to know if the best way to report this is file this year with the incorrect W2 and then wait and file next years taxes with the 1099-R or if there is something I need to do now that I don't know about.
Thank you!,
LaLiving32
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Yes, you avoided double taxation since you removed the excess deferral before April 15th, 2024. You must include the excess deferral in your wages in the year the excess deferral happened.
Please follow the steps below to report the excess deferral for 2023 on your 2023 tax return:
Please note for the Tax Year 2024 tax filing due April 15, 2025:
2024 Forms 1099-R will be issued reporting the excess.
Please see Pub 525 for additional information.
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