401k over-contribution in 2018, reported in 2019

Forum|Forum|6 years ago
April 12, 2020
1 reply
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Need some guidance on how to address.

While I over-contributed the 401k by about $1500 in 2018 (had two jobs and mis-calculated), I caught it before the end of the year, and had the 401k company issue me a refund. However, they issued the refund in early 2019, and this year sent me a 1099R-2019 for the over-contribution, with a P distribution on it.

Using 2018 TurboTax to amend my 2018 taxes, using the 1099R-2019, the P code indicates it is for 2017 overpayment, not 2018.

Now I'm confused as to how to address this. Am going to contact the 401k firm tomorrow. Do they need to issue me a 2018 1099R, or do I simply claim this as income in 2019???

Just want to pay what I need to do correctly. Thx

Best answer by macuser_22

A code P when entered into the 2018 software will ask what year the 1099-R is for. Choose 2019 and then the taxable in 2017 changes to taxable in 2018. The year on the 1099-R advances the "taxable in year" by 1 each year.

macuser_22

Answer

Alumni - Champ

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

WDM67Author

Level 4

Champ,

Thank you for the quick reply. I was able to select 2019, which makes me now pay additional taxes for 2018. Perfect. Per my understanding, I have to mail this in to both the Federal and State agencies. A pain, but can do so. Thx again.

macuser_22

Alumni - Champ

Code P should add it to line 1 on the 1040 as wages since it replaces the taxable wages that were not taxed on the original 2018 tax return.

Amended returns can only be mailed. It is suggested that you mail with a tracking service since that is your only proof of mailing and The IRS received it.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**