Tax Drill $-$ Section $401($k$)$ Plan

Joanna, age $44,$ defers $\backslash (\backslash$$ $23,500\backslash )$ in a qualified $\backslash (\backslash$$ $401($k$)\backslash )$ plan in $2023.$

a$.$ What amount must be returned to Joanna and by what date?

The $\backslash (\backslash$$ $1,000\backslash$times $\backslash )$ excess over the annual limit$,$ along with the appropriate earnings, must be returned to Joanna by Antil $15,2024$

b$.$ In what year will the amount be taxed?

$\backslash [$

$2023-$v

$\backslash ]$

c$.$ What percent of the tax will be taxed to the emplyyer if not returned by what date?

There will be a $\backslash (\backslash$square $\backslash )10$ V $\backslash \%$ tax on Joanna's employer on any amount not returned within $21/2$ months

$\backslash (\backslash$square $\backslash )21/2$ after the close of the plan year.

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