Last fall, I changed jobs. Shortly after, I rolled over my 401(k) from my previous employer into a rollover traditional IRA. Later, I rolled traditional IRA into my new employer's 401(k) plan. Now the plan administrator from my previous employer contacted me to tell me that the plan's Actual Deferral Percentage testing failed and as a result I had made excess contributions for last year. They already sent me a 1099-R for the original rollover and are now sending me an adjusted 1099-R for the rollover and an additional 1099-R for the excess contributions.
To make this easier to understand, here are the forms I have:
- outdated 1099-R from previous employer showing $15,000 rollover to traditional IRA
- amended 1099-R from previous employer showing $10,000 rollover to traditional IRA
- 1099-R from previous employer showing $5,000 of taxable excess contributions
- 1099-R from traditional IRA provider showing that I rolled over $15,500 into my new employer's 401(k) (includes $500 of earnings while the money was in the traditional IRA)
My question is, what do I need to fix this? Can I fix this by asking for a return of excess contribution from my new employer's plan? Or do I need to do something with the intermediate rollover traditional IRA?
Side note: I've already maxed out my IRA contributions for both current and prior years.
Related: Return of excess 401k contributions after rollover to IRA
