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@JB Story 1 wrote:

Thanks so much for responding.

In this case, the taxpayer has 2 jobs and had the maximum taken from Job #1 and $5806 more taken from Job #2 which is in Box 12-D.  So, it was not taxed and shows up in software demands that it be entered in excess deferrals.  However, it was moved to a Roth just a day ago.

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Okay, then yes, you have an excess deferral.  I would be shocked if your client can get a corrective distribution at this point.  If the one 401(k) is already closed/converted to Roth IRA, that's not coming back (and would be fully taxable as a Roth conversion).

You MIGHT get the other employer to correct it but they usually need more than 4 days notice.  Since there's no error from their perspective, it doesn't taint their plan if they don't correct it.  Instead your client will end up paying tax on that as an excess contribution now (1040 Line 1h) and again when they retire and start taking distributions.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf#page=24

The following types of income must
be included in the total on line 1h.
• Excess elective deferrals. The
amount deferred should be shown in
box 12 of your Form W-2, and the “Re-
tirement plan” box in box 13 should be
checked. If the total amount you (or
your spouse if filing jointly) deferred for
2024 under all plans was more than
$23,000 (excluding catch-up contribu-
tions, as explained later), include the ex-
cess on line 1h.