Excess 401k contributions

[KLC]

Excess 401k contributions of $100 but lost $10, so company only sent me the $90 check.  I reported $90 on 2022 return as excess contribution… Do I need to do the amendment tax return for the tax year of 2022.  Thank you!

[MarilynG1]

If you received a 2023 401(k) excess deferral distribution in 2024, you'll receive a 2024 Form 1099-R with a distribution Code P in box 7; however, it must be included on your 2023 tax return. 

You have two options to do that:

1. Wait until next year when you receive the 2024 Form 1099-R and amend your 2023 tax return.
2. Report it now on your 2023 return and ignore the 2024 1099-R when it comes next year.
   • If your 2024 Form 1099-R has an amount in box 4, Federal tax withholding and/or box 14 State withholding, then you must enter it on your 2024 tax return. The 2023 Code P won’t affect your return, but the withholdings will be applied to 2024.

Select your choice below and follow the instructions provided for 401K Excess Distribution. 

[KLC]

Thank you for your answer but my question was do I necessarily need to do the amendment return since I had already reported the $90 on the 2022 tax return as an over contribution but not The loss $10.  I did receive a 1099R on 2024 and just stated that $90 on line 12 with code P and didn’t mention the original contribution of $100.  I understand that at some situation it’s not always need to do the amendment and wait for the IRS to recover the issue and notify me is the better way.  Thank you!