H2202

Is having the broker recharacterize the excess "employer" contribution (plus earnings) from 2020 to 2021 an option?

The excess deposit was made in 2020 unfortunately. The "employer" contributions exceeded the 25% self-employed contribution limit after deducting one-half of self-employment tax.

The employer contributions were made based on the assumption that all my 2020 income would be reported on a 1099 NEC. Unfortunately, the medical center where I am an independent contractor paid a portion of my total income on a W-2.

Due to unexpected W-2 income in 2020, I have excess employer non-elective contributions to my solo traditional 401k. I am a sole proprietor. Any advice on how to handle this situation with the IRS would be appreciated. I have not filed my 2020 taxes yet. - 2020 tax year 401k excess employer non-elective contributions of $3984