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Level 3
Nov 22, 2023 4:36 AM UTC
Solved

excess contribution

On 4/13/23, while I was preparing for the 2022 tax return, I found out that I had an excess contribution of $109, so, I contacted my company which referred me to Fidelity the Administrator. Fidelity said that I passed the 3/2023 deadline so Fidelity would not be able to make any changes.  Though I hadn't received the excess contribution, I reported it on my 2022 tax return under other income. Afterward, I contacted my company but it said that they would neither withdraw the excess from my retirement a/c nor send me an amended W2,  how should rectify this tax situation?  Thanks!

    dmertzAnswer
    Level 15
    Nov 22, 2023 4:55 AM UTC

    Expert Reviewed

    There is nothing more for you to do.  The $109 excess deferral will simply be taxed a second time when eventually distributed.  Even though you paid tax on this money, it did not create any after-tax basis in the plan.

    8 replies

    dmertzAnswer
    Level 15
    Nov 22, 2023 4:55 AM UTC

    Expert Reviewed

    There is nothing more for you to do.  The $109 excess deferral will simply be taxed a second time when eventually distributed.  Even though you paid tax on this money, it did not create any after-tax basis in the plan.

    CL7Author
    Level 3
    Nov 22, 2023 10:12 PM UTC

    Thanks for your prompt reply!

    Would you suggest I amend the 2022 return since I have never received an excess retirement contribution? Then, wait till I get the distribution (when I retire) & pay the tax all at once. Thanks!

    Level 15
    Nov 23, 2023 2:58 AM UTC

    Since you have already included the $109 on your 2022 tax return as other income, there is nothing to amend with regard to this.