Excess 401k Contribution in 2024

[danwhitmire1962]

I changed jobs in 2024 and continued to add to my 401k, which put me over by $9104.  I moved my old 401k to Edward Jones in 2025.  They returned the $9104 plus additional $154.62 (earnings).  However, since this was done in 2025 I will not get a 1099-R until next year for my 2026 return.  My 2024 W-2 reflects the $9104 as contribution.  Can I ignore this and wait until next year to do a 2024 Amended return and pay the taxes at that point?  What are my options?

[MaryK4]

Because you withdrew before the due date of your tax return, you will not incur the penalty for having it in the account; however, if you wait to amend you will owe tax on the amount as income in 2024 and may have to pay penalty and interest for late payment of tax.

If you want to report on your 2024, see What if I have a 401(k) excess deferral? - TurboTax Support.

[danwhitmire1962]

When entering in a 1099-R in Turbo Tax what should I enter into Box 7?  I read some discussions where P should be entered, but then I also read 8 should be entered since it is for year 2024.  Can you please explain the difference?

Thanks

[MaryK4]

The 1099-R is only needed for IRAs, because your excess was a 401k, it was pretax on your W2 (as indicated) so you only have to add the income to correct.  You do not have to enter a 1099-R for this- you only have to report the income:

1. Under Less Common Income, select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C.
2. Select Start next to Other income not already reported on a Form W-2 or Form 1099.
3. Answer Yes to Did you receive any other wages?, then Continue.
4. Continue until you get to the Any other earned income screen. Answer Yes and select Continue.
5. On the Enter Source of Other Earned income screen, select Other and Continue.
6. On the Any Other Earned Income screen, enter 2024 Excess 401(k) Deferrals for the description, enter the amount, and select Done.

@danwhitmire1962 

[danwhitmire1962]

One more question.  I had already moved the 401k from my former employer to an IRA Edward Jones.  I did it in Tax Year 2025.  The distribution came from Edward Jones IRA.  Does that change anything?  I understand the earnings will be covered in Tax Year 2025.  Do I still follow the steps you provided?  Sorry with so many questions as I don't speak financial terms 🙂

[RobertB4444]

The only thing that it changes is that the substitute 1099-R that you are going to enter for 2024 is going to be from Edward Jones so that it matches the one from 2025.

@danwhitmire1962