"Also, I'm not sure how to correct the IRA overpayment?"
You need to contact your IRS custodian and request of withdrawal of excess contributions. There is possibly a form online at the custodian's website for this; otherwise, speak to a customer service rep - this is a common enough thing that people do.
Please do this tomorrow (April 15th). Excess contributions to an employers-sponsored plan must be withdrawn by April 15th, and I can't find at the moment whether or not this also applies to IRAs. Better safe than sorry.
When you are entering the 1099-R into TurboTax, I believe that TurboTax will ask you if you want to withdraw the excess by the due date of the return. Answer "yes".
Yes, you can contribute to both, but because the 401(k) contribution reduced your taxable income, the limit was imposed on the Roth IRA.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
