To correct the excess deferral, you must notify one or more of your plans. If the plan permits excess deferral distributions, the plan must:

• Return the excess amount, along with any income earned on that amount, by April 15, 2024.
• File a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., for the year the plan returns the excess contribution to you.

If the excess deferrals are not corrected timely:

• The excess amount is taxable to you in the year you made the contributions and in the year you receive them as a distribution from the plan (unless the excess deferral was a designated Roth contribution).
• The earnings are taxable in the year they are distributed.

Reporting Requirements

You report the distribution listed on Form 1099-R on the wage line of your return if you receive it by April 15th after the year you contributed it to the plan:

• Report your excess deferrals in the year you made them.
• But, report the earnings on your excess deferrals in the year you receive them.

Corrective Distribution

When a plan returns excess deferrals to you, they're considered corrective distributions. They aren't considered a distribution from your plan.
Therefore:

• You can't roll the distribution over into another plan,
• You won't be subject to the 10% additional tax for early distribution,
• Your distribution won't have the required 20% federal income tax withheld, and
• Your distribution isn't subject to a spousal consent requirement."