Unexpected 1099-R for excess deferral

[jtk321]

I filed my 2021 taxes this year, which included a small return of excess 401k deferrals due to switching jobs mid-year (~$37). I notified my 401k provider of the excess in Jan. '22, and they issued the distribution in Feb. '22. They informed me they would be issuing a 2022 Tax Year 1099-R for this distribution in 2023 coded for the prior year (meaning this tax year, 2021). Based off of that information, I followed the instructions here: https://ttlc.intuit.com/community/earned-income-credit/help/what-if-i-have-a-401-k-excess-deferral/0... and reported the distribution on my 2021 taxes as "Other income not already reported on a Form W-2 or Form 1099" with the note "2021 Excess 401(k) Deferrals", as that link suggests. I filed my return, it was accepted, and I've received the refund already.

Lo and behold I received a 1099-R from my 401k provider in the mail today for Tax Year 2021 (not 2022, as they had told me). My question is, do I need to amend my return to account for this? There was no tax withheld from the excess deferral distribution, and I already reported the income (albeit in perhaps not the exactly correct place). I don't believe copies of 1099-R forms without withholding are sent to the IRS, so I think I'm in the clear here, but was curious others' opinions. I can certainly amend, but I'm not sure what I would change, as my taxable income has not changed (since I already reported that extra $37).

[Mike9241]

if the code in box 7 "8". do nothing.

[jtk321]

The 1099 is coded in Box 7 as "E", meaning "Distributions under Employee Plans Compliance Resolution System (EPCRS)", according to the form instructions.

[macuser_22]

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@jtk321 wrote:

(since I already reported that extra $37).

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How did you report it?  Unless it is a 401(k)  Roth (Designated Roth) then it is fully taxable assuming box 1  and 2a are the same and must be reported on the 1040 line 5a and 5b.

[jtk321]

Thanks for the reply. Based off the turbo tax help page I linked in my post, I reported it in TT as "Other income not already reported on a Form W-2 or Form 1099". Boxes 1 and 2a are the same (fully taxable), and the contributions were to a traditional 401k (coded D on W2 Box 12). In my 1040, boxes 5a and 5b are empty, as I did not have the 1099 at that time. The $37 is included in line 1 of my 1040, and specified on my "Wages, Salaries, & Tips Worksheet" under line 9b, with a custom label of "2021 Return of excess 401(k) deferral".

[macuser_22]

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@jtk321 wrote:

Thanks for the reply. Based off the turbo tax help page I linked in my post, I reported it in TT as "Other income not already reported on a Form W-2 or Form 1099". Boxes 1 and 2a are the same (fully taxable), and the contributions were to a traditional 401k (coded D on W2 Box 12). In my 1040, boxes 5a and 5b are empty, as I did not have the 1099 at that time. The $37 is included in line 1 of my 1040, and specified on my "Wages, Salaries, & Tips Worksheet" under line 9b, with a custom label of "2021 Return of excess 401(k) deferral".

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It is not "Other Income" is is a 401(k) distribution that can only be reported on the 1040 line 5a & 5b.

If you do not amend 2021 and remove the Other Income and report it using the 1099-R then you will be getting a letter from the IRS in amount a year and a bill for the unreported 1099-R.     The overall tax might not change but the IRS will considered it to be unreported income.     The IRS only sees the 1099-R that the payer reported and if not on line 5a/b will consider it unreported income.       It is probably easier to amend now while it is fresh than in a year or so when this has been long forgotten.

[jtk321]

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@macuser_22 wrote:

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It is not "Other Income" is is a 401(k) distribution...

Yes, I realize that. If you read my original post, I only reported it like this because the 401k company explicitly told me (incorrectly) that I would _not_ be receiving a 2021 1099-R, and so I followed the instructions provided by TurboTax for that exact scenario. Regardless, I'll amend it to dot my T's and cross my I's. Thank you for your input.