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excess contribution

Forum|Forum|2 years ago
November 22, 2023
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On 4/13/23, while I was preparing for the 2022 tax return, I found out that I had an excess contribution of $109, so, I contacted my company which referred me to Fidelity the Administrator. Fidelity said that I passed the 3/2023 deadline so Fidelity would not be able to make any changes. Though I hadn't received the excess contribution, I reported it on my 2022 tax return under other income. Afterward, I contacted my company but it said that they would neither withdraw the excess from my retirement a/c nor send me an amended W2, how should rectify this tax situation? Thanks!

Best answer by dmertz

There is nothing more for you to do. The $109 excess deferral will simply be taxed a second time when eventually distributed. Even though you paid tax on this money, it did not create any after-tax basis in the plan.

D

dmertzAnswer

Employee

There is nothing more for you to do. The $109 excess deferral will simply be taxed a second time when eventually distributed. Even though you paid tax on this money, it did not create any after-tax basis in the plan.

C

CL7Author

Thanks for your prompt reply!

Would you suggest I amend the 2022 return since I have never received an excess retirement contribution? Then, wait till I get the distribution (when I retire) & pay the tax all at once. Thanks!