Excess ADP 401K contribution in 2021, but got a 1099-R in 2022 with code 8 in box 7

[lcai69]

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? 

[dmertz]

You said that you got the Form 1099-R in 2022, which would seem to suggest that the form was a 2021 Form 1099-R that was reportable on your 2021 tax return, but the rest of your post seems to imply that the form was a 2022 Form 1099-R.  To be clear, which year is on the Form 1099-R?

Does the form show the same amount in box 2a as is in box 1?

How must investment gain or loss accompanied the distribution of the excess?

[lcai69]

Thank you for your reply.

The form is a 2022 1099-R Form (not 2021). The year of the form is 2022. But the excess happened in 2021, ADP even cut a check on the 12/31/2021, but show how ADP auto deposit in March 2022.

Box 2a and box 1 has the same amount.

How must investment gain or loss accompanied the distribution of the excess? -- unknown

[dmertz]

I agree that it seems that the 2022 Form 1099-R should have had code P to indicate that the distribution was taxable in 2021 rather than in 2022.