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?
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.
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!