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You have to get the 401k plan (Vanguard, Fidelity etc) to return the excess contribution. If you do it before a certain date there’s no penalty.

Thank you , makes sense. I will need to get them to write me a check for the excess amount ~4k. However, I'm not clear on how I pay taxes for this amount.

Would a fresh W2 need to be issued? or can I pay it when I file for 2021 taxes next year since I am receiving this payment this year.

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