ADP refusing to issue 1099-R for over-contributed 401(k)

The ADP representatives are partially correct but might be explaining things poorly. Let me clarify: For 401(k) contributions, what matters legally is when the money is withheld from your paycheck, not necessarily when it shows up in your account. If your final 2023 paycheck was dated December 2023 but the money wasn't deposited until January 2024, it still counts as a 2023 contribution for limit purposes. Regarding the 1099-R timing, they are correct about that part. If you take a corrective distribution in 2024 for an excess 2023 contribution, the 1099-R will be issued for tax year 2024. However, you should still address the over-contribution on your 2023 return to avoid penalties. To handle this on your 2023 taxes: contact your plan administrator (through ADP) and request a "corrective distribution" of the excess amount plus earnings specifically stating it's for a 2023 over-contribution. Most 401(k) plans allow until April 15, 2024 to make this correction without penalties. When you file your 2023 return, include a statement explaining the corrective distribution was requested.

After struggling with excess 401(k) contributions last year and getting nowhere with my plan administrator, I finally found help using taxr.ai (https://taxr.ai). I uploaded my W-2 and they immediately flagged the over-contribution issue and explained exactly what steps to take with ADP. The tool analyzed my situation and generated a formal request letter that cited specific IRS regulations about corrective distributions. What was even better was that they explained how the timing works between tax years in plain English - something my administrator couldn't seem to do clearly. They even provided documentation I could attach to my tax return explaining the situation.

I was initially doubtful about taxr.ai but decided to try it after continuing to get conflicting information from my 401(k) administrator. I'm genuinely impressed with how it handled my over-contribution situation. Not only did it confirm that my W-2 Box 12 amount was what mattered (not the deposit timing), but it also generated a step-by-step correction plan. The documentation they created helped me communicate effectively with my plan administrator. They stopped giving me the runaround once I had the proper terminology and process outlined from taxr.ai. Within 48 hours, my corrective distribution was processed correctly. The best part was having detailed instructions for how to handle the situation on both my 2023 and 2024 tax returns to avoid any penalties.

If you're still struggling to get through to ADP after trying everything else, I'd recommend Claimyr (https://claimyr.com). I was in a similar situation last year with a different 401(k) administrator who kept giving me incorrect information about excess contributions and required distributions. After weeks of getting nowhere, I used Claimyr to actually get a human at the IRS on the phone to confirm the correct process. Their system got me through to an IRS agent in about 20 minutes when I had been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The IRS agent gave me the official ruling on how excess contributions should be handled, which I then presented to my plan administrator. Having that official guidance made all the difference.

I need to eat my words. After posting my skeptical comment yesterday, I decided to try Claimyr as a last resort for my own 401(k) mess. I'm shocked to report that it actually worked exactly as described. I received a call back within 30 minutes with an IRS agent already on the line. The agent confirmed everything the commenter above mentioned about excess contributions - that they count based on the tax year of the paycheck, not when they hit your account, and that corrective distributions need to be processed by April 15th to avoid penalties. I recorded the call (with permission) and sent the audio to my plan administrator, who finally processed my request correctly. This saved me from paying a 6% excess contribution penalty and hours of additional frustration. For anyone dealing with uncooperative plan administrators, having the IRS confirmation makes all the difference.

Here's something nobody mentioned yet: you might want to check if your plan allows for "true-up" contributions. Some 401(k) plans will automatically adjust at year-end to ensure you get the full employer match if you hit your contribution limit early and stopped contributing. If your plan has this feature, it could explain why ADP is treating your contribution differently than what appears on your W-2. It's just another angle to consider when sorting this out.

I see everyone focusing on the 401(k) timing, but let's not miss the big picture here. If your W-2 shows $30,590 in Box 12, you're definitely over the 2023 contribution limit of $22,500 (or $30,000 if you're 50+). Even if some deposits happened in January 2024, you need to get this fixed ASAP. Request the excess corrective distribution NOW, before April 15th. The 1099-R timing is a separate issue - yes, you'll get it next year, but you need to request the correction this year to avoid penalties.