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Level 1
posted Mar 17, 2025 3:03:06 PM

Excess contribution ROTH 401 do i need corrected W2

I worked for two different employers in 2024. As a result, I over contributed to my ROTH 401k.  I caught this and requested a return of the funds from the 401k company and have received it.  However, my employer is saying since it was a ROTH over contribution, I do not need a corrected W2.  Is this true?  Do I just manually adjust the amount reflected on line 12 to the corrected amount or file as is and keep documentation on hand to show the returned amount.

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1 Replies
Level 15
Mar 17, 2025 3:42:36 PM

Do not adjust the W-2s.  Report them exactly as they are.  You will not get a corrected W-2 from either employer because what each employer reported is what actually happened with that employer.

 

Because this is a Roth deferral (after-tax) you do not report the returned excess contribution as taxable income.  So basically, once Turbotax says "you need to remove the excess", that's all that happens on your tax return. Nothing else needs to be changed or adjusted.