Postpone Return of 401K Excess Contribution

[parth33327]

I pre-paid early 2022 federal and state estimated income taxes in 2021. Can I postpone the return of my 2022 individual 401K excess contribution until the stock-market returns to previous level to avoid losses from selling low, or must I withdraw the excess funds by April 1, 2023?

Most forum posts state that excess withdrawal for a previous year must be done before April 1 of the current year, but in my case I proactively paid the estimated income taxes in the previous year, and would continue to pay additional taxes in case of any gains.

For example, Can I delay the return of excess contribution until 2026 in case the stock market does not recover until then? 

[tagteam]

@dmertz 

[Mike9241]

Can I postpone the return of my 2022 individual 401K contribution until the stock-market returns to previous level to avoid losses from selling low, or must I withdraw the excess funds by April 15, 2022?

you can postpone the return of excess 2022 401k contributions until 4/15/2023 (4/15/2022 has passed) 

you can only withdraw the excess contribution without penalty. there is a penalty for early withdrawal of non-excess if you are not 59- 1/2 it is taxable income. 

[dmertz]

The deadline to obtain a return of an excess elective deferral is April 1, not the due date of your tax return.