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Colfax Mingo

Excess 401(k) Deferral

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Taxpayer received two W-2’s. Total 401(k) deferral amounts were 1,000 over max amount. This was not discovered until mid-May and excess amount and earnings distributed to taxpayer May 21, 2020.

How do I report this? Do I leave Box 12, Code D amounts on W-2’s alone showing the deferral amount greater than the maximum allowed, this would also result in an under reporting of wages by the same 1,000, and report that 1,000 somewhere else on return (Form 1040, Line 8, Schedule 1) write in Excess 401(k) Deferral at bottom of page?

Is the date to fix this and not be taxed twice still fixed at April 15, 2020 for the 2019 return or is it extended until July 15th. Retirement company says to report the 1,000 dollars on 2019 return and that they would issue two 1099-R forms by January 31, 2021, for excess deferral and earnings I’m guessing.

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