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ls2554
Level 1

Excess 401k contribution - mix of Roth and traditional

We are dealing with a an excess contribution that was a mix of contribution to a traditional 401k and a Roth 401k. 

 

I have read through past Q&As and understand the basics for handling an excess 401k contribution. We notified the plan and received disbursement prior to the deadline. I know the steps to report the excess contribution on our 2021 taxes (we filed an extension so haven't filed yet) and the allocable income on the 2022 taxes. And I understand we will receive two 1099-Rs in January 2023.  

 

When it comes to reporting the excess contribution on our 2021 taxes, I just want to confirm that my understanding is correct: I should report the (distributed) excess contribution to the traditional 401k but not the (distributed) excess contribution to the Roth 401k,  right? I know that next year I will report the allocable income for both as tax year 2022 income. 

 

Thank you for the help!

1 Reply
dmertz
Level 15

Excess 401k contribution - mix of Roth and traditional

I'll assume that these were contributions reported with codes D and AA on a W-2.  The only portion that is to be added to 2021 income is the portion returned from the traditional 401(k) account, originally reported with code D on the W-2.  This needs to be added to 2021 income because it was not included in the amount in box 1 of the W-2.  (The amount contributed as Roth contributions was included in box 1 and therefore has already been included in income.)

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