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401k overcontribution - amended W2

Forum|Forum|5 years ago
February 25, 2021
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Hi,

Due to having two employers I overcontributed to 401k. I found out and just requested to correct the distribution. My employer told me that I will receive it will be distributed back, that I will receive 1099R next year, and that they will not issue an amended W2 since no errors were made. All web-sites suggest that I am supposed to receive an amended W2. Can you please verify? Am I supposed to get a corrected W2? If not, how do I report that the excess distribution was done before April 15th and avoid double taxation? thank you

401K

Best answer by ErnieS0

Most times employers will issue a corrected W-2. Some will not, due to the cost. It sounds like your employer is in the latter group.

Regardless, file your taxes correctly, meaning (1) add back the excess 401(k) amount because it was deducted from your wages as a pre-tax deduction and (2) correct W-2 Box 12 Code D amount to show there is no excess contribution (because you fixed it).

Awesome Tax Expert @MinhT1 explains how in Excess 401K contribution and corrected W-2c form

E

ErnieS0Answer

Most times employers will issue a corrected W-2. Some will not, due to the cost. It sounds like your employer is in the latter group.

Regardless, file your taxes correctly, meaning (1) add back the excess 401(k) amount because it was deducted from your wages as a pre-tax deduction and (2) correct W-2 Box 12 Code D amount to show there is no excess contribution (because you fixed it).

Awesome Tax Expert @MinhT1 explains how in Excess 401K contribution and corrected W-2c form

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