Due to the annual discrimination test, part of my 401(k) contribution (and respective earnings) were returned to me as excess contributions. The claim from my company is that they are taxable for TY2000. However, I received the funds today (March 21) which is after the 2 1/2 months after the plan year (which I would think makes it part of TY2001 income according to Pub 525). However, the date on the check is March 15. The date on the letter accompanying the check is March 19 (so the company didn't plan to distribute checks before March 15). I received the check on March 21 in a standard mailing to employees (no post mark, distributed through company mail). Of course, my tax return is already put together and filed. Which factor rules in this case as to which year to apply the excess contribution?Thanks,LooseChange
>Due to the annual discrimination test, part of my >401k) contribution (and respective earnings) were >returned to me as excess contributions. The claim >from my company is that they are taxable for TY2000. This is VERY common, believe it or not. And they are taxable to the Year 2000. You should file an amended return, but you may decide to cross your fingers and see if the IRS sends you a letter about it down the line.
This message may be a little misleading but this was the only way I could find your Email address.Thanks for the link to the Excel Viewer. I have a terrible time finding anything on their website. It seems that everytime I go there they have changed everything. You would think as smart as they are they could have come up with the perfect website design by now!"mathetes" and I have been corresponding back and forth trying different approaches and nothing seems to work. I am going to take your advice and send the link to these people.I am retired. I don't know how much time I have left on this earth but I'm sure as hell not going to spend it fooling around with this problem!Thanks again and Happy New YearVery Fooly YoursDon WilsonThe Villages Fool
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