Hoping for an answer ASAP. I just found out I have overcontributed to my 401k for 2020 (2 different employers). It's after April 15th so Fidelity can no longer withdraw the excess. However, I haven't filed my taxes yet. I still have 2 days! Should I go ahead and add that amount to my wages? Fidelity said the excess can no longer be withdrawn so should I contribute less to my 401k in 2021 to offset the excess in 2020?
1 Answer
It looks like you are right: Add the amount to your wages, pay the tax and move on with your life.
To the extent that a corrective distribution is not made within the correction period, the excess deferrals may not be distributed until a distribution is otherwise permissible under the terms of the plan...
answered May 15, 2021 at 3:47
