ETax847 Posted February 24, 2013 Report Posted February 24, 2013 I have a tax client who contributed $17k to a 401k plan and $7k to a 403b plan with her new employer in 2012. To correct the $7k contribution to the 403b, after contacting her employer will she be receiving a new W2? Or what generally happens in cases like this? Quote
imjulier Posted February 24, 2013 Report Posted February 24, 2013 What I have seen is a 1099R from the plan administrator...like fidelity showing the distribution of the excess contributions. No change to W-2 as the 1099 is taxable. 1099R won't be issued until after 2012. This is just what I have seen. Quote
Catherine Posted February 24, 2013 Report Posted February 24, 2013 If the withdrawal of excess is NOT made by 4/15, there are nasty penalties. The closer to 4/15, the busier the custodians get and the more likely they miss the deadline (they're also processing last-minute IRA contrib's at that time). Tell you client NOT to dawdle on submitting the withdrawal forms. Quote
ETax847 Posted February 25, 2013 Author Report Posted February 25, 2013 If the client contacts the plan administrator, should I just add the excess amount to "Other Income"? Quote
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