AlbanyConsultant Posted August 21, 2024 Posted August 21, 2024 I must lead a charmed life; it has been a long time since I've had a 401k plan not refund within 2.5 months (that I can recall; I'm also getting older). Now I've got one, and I was positive that the earnings on the refund were included in the amount reported on the 5330... but that's not what the instructions seem to say. It says the tax is on the excess contributions and are the amounts "actually paid" over what was allowed... and doesn't mention earnings. Am I just mis-remembering this rule? Is it really just the base amount of the refund that gets taxed? If the earnings are included, is there a cite for that? Thanks.
AlbanyConsultant Posted August 21, 2024 Author Posted August 21, 2024 Never mind - it's old person brain. EOB confirms that it is without earnings.
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