Normally the max you can contribute to a 401(k) is $18,000, which I did. But I guess there's some sort of top-heavy test or highly compensated employee test or some such that my company failed so now I'm getting refunded more than half of what I put in.
My question is how this'll work for my taxes. I'm assuming I'll be getting a 1099-R for this income. For early withdrawals you have to pay a 10% penalty. Will I need to pay that? That would be very frustrating if I did since this isn't exactly a consensual withdrawal but whatever.
Also, does this income mean that I'll need to do a quarterly tax filing (1040-ES) to avoid owing late penalties?