The withheld taxes will have to be entered on the 2024 tax return. You will enter the 2024 Form 1099-R showing the tax withheld on your 2024 tax return.
Please follow the steps below to report the excess deferral on your 2023 tax return:
- Login to your TurboTax Account
- Click "Wages & Income" (under Federal) on the left side of your screen
- Scroll down to "Less Common Income" and click "Show More"
- Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
- Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
- On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
- Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
- On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
- On the "Any Other Earned Income" screen enter "2023 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".
If you receive the distribution of the excess deferral and earnings by April 15th then please note for the Tax Year 2024 tax filing due April 15, 2025:
2024 Forms 1099-R will be issued reporting the excess.
- Form 1099-R with Code P in box 7 can be ignored if you reported the excess as described above in 2023.
- However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2024.
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