of such systems is usually done within the two-level approximation. However, accurate theoretical modeling requires taking into account the influence of the higher excited states without limiting the system to the two-level qubit subspace. Here, we study the dynamics and control of a superconducting transmon using the numerically exact stochastic Liouville-von Neumann equation approach. We focus on the role of state leakage from the ideal two-level subspace for bath induced decay and single-qubit gate operations. We find significant short-time state leakage due to the strong coupling to the bath. We quantify the leakage errors in single-qubit gates and demonstrate their suppression with DRAG control for a five-level transmon in the presence of decoherence. Our results predict the limits of accuracy of the two-level approximation and possible intrinsic constraints in qubit dynamics and control for an experimentally relevant parameter set.