No W2c for 402(g) excess contribution

[LukeVetri]

I discovered that I made overpayment to my company 401(k) in 2020 due to changing jobs mid year, I have contacted Fidelity, they have returned the overpayment and gains, and will issue 1099R-P and 1099R-8 in 2021 but my employer says they will not issue a W2c for 2020 what should I do?

[MaryM428 · Accepted solution]

Fidelity will issue you a 1099-R and 1099R-8 you will report the excess contribution on your 2021 tax return next year.  You do not have to do anything until next year.  



 

[nrmitchell]

This answer to the 402G excess contribution came up in my search, as I appear to be in the exact same boat as the person replied to beforehand.

   I changed jobs mid year, and inadvertently contributed too much across my 401K plans.  I contacted my current 401K provider, and they issued me a refund check.  However in the accompanying statement I got, it says it is for 'tax year 2021' (shouldn't it be 2020, given that it was from tax year 2020 I requested the excess funds back from?).

   Like the prior inquiry, I was also told not to expected a W2C, and that a 1099R will be issued for my 2021 taxes.

   However, what do I need to do (if anything) for my 2020 taxes?  For example, should I subtract the amount of the check from the amount of my 401K contributions in my W2 (box 12D), and add the amount of the check into W2 (box 1 - wages)?

   I am under the impression that I get a penalty for over contribution, so may need to do something ahead of getting a 1099 for my 2021 taxes.

   Very many thanks in advance!