Due to multiple employers, I mistakenly over contributed to my 401k plan for 2022. It's complicated. Ultimately I caught this error late, and did NOT receive the distribution of the excess deferral before April 15th. I filed for an extension, and I am now trying to figure out how to enter in the over contribution. My understanding is that I am taxed twice. Once in 2022 and then again when I take this distribution (2023). Do I enter the excess deferral under "miscellaneous income" similar to what is recommended for excess deferrals received prior to April 15th or do enter it in the income section for "retirement plans and social security"? Thanks in advance for all your help.
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You simply enter the 2 W-2 forms as is and the program will compute the excess and add it back into income automatically ... you do not need to make any other entries.
I'm confused. All the posts I have read about excess deferrals say to enter excess deferral under "Other income not already reported on a Form W-2 or Form 1099" section because TurboTax will not automatically add the excess deferral to my wages. Granted all the posts I can find on this topic are about excess deferrals returned prior to April 15th. Are the steps you recommend unique to excess deferrals returned AFTER April 15th? Thanks.
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