I received a check in March 2011 along with a 2011 1099-R for excess 401K contribution made in Tax year 2010. I am a high-compensated employee, the excess was due to company 401(k) matching which was credited into the 401K only in March 2011.
Can I rollover the excess amount ($5000) to a Traditional IRA, within 60 days of the date the check was issued, either to 2011 or 2010 (before April 15 deadline), to avoid taxation ? I would then instruct the plan administrator to change the Distribution Code (box 7) of 1099-R to "rollover".
Or just put the check into a non-working spouse's Traditional IRA (qualified, as I make less than $177,000) to reduce taxes for 2010 (before the April 15 deadline).