Message Boards Digest, as of June 25, 2026

Message Boards Digest

June 25, 2026

Vlad401k created a topic in Distributions and Loans, Other than QDROs

Distribution Code for Excess Deferrals Due to 402(G) Limit in Current Year

"A participant deferred too much in 2026 and exceeded the 402(g) limit. We calculated the earnings on the excess and will distribute the excess plus/minus earnings. Which code should be used for this distribution? Should it be code 8? How will this affect their taxes for 2026? Since the participant will be limited by the 402(g) limit on the tax return, would he be double taxed if he also reports the excess distribution (using code 8)?"

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