401k contribution

[blr7]

Originally I had overcontributed to my 401k in 2016.  But 1 of my employers 401k manager issued a Corrective Distribution Refund Check bc they failed the Actual Deferral Percentage and Actual Contribution Percentage tests, so now I'm well below the limit.  Do i need an corrected W2 to submit my taxed for 2016 or  can i just manually tally the actual 401k contribution for 2016.  The refund check came in 2017.

[JBH0 · Accepted solution]

This same thing actually happened to my wife this year.  It turns out (in her case) you do not get a corrected 2016 w2.  If the money is returned in 2017, you recognize that as income in 2017, and be liable for the associated taxes in 2017.  You should probably confirm that with your plan administrator.