How to enter a loss on a corrective distribution – here is a very nice answer from MaryK1 from a previous year. The Search parameter and the navigation is still correct for 2019.
Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. Include the loss as a negative amount on line 8 on Schedule 1 (1040) and identify it as “Loss on Excess Deferral Distribution.” Even though a corrective distribution of excess deferrals is reported on Form 1099-R, it is not otherwise treated as a distribution from the plan. It cannot be rolled over into another plan, and it is not subject to the additional tax on early distributions.
How to do this in TurboTax:
The easiest way to get to the interview questions is to type "excess salary deferrals" in the search box and click on Jump to Excess Salary Deferrals
You can also get to the same place by going to the Miscellaneous Income, 1099-A, 1099-C line at the bottom of the Wages & Income screen .
On the Other Wages Received screen click Yes to the question:
Did you receive any other wages?
Click Continue.
On the Wages Earned as a Household Employee screen, Enter nothing and Click Continue.
On the Sick or Disability screen, Enter nothing and Click Continue.
On the Any Other Earned Income screen click Yes to the question:
Did you earn any other wages?
Click Continue.
On the Enter Source of Other Earned Income screen click Other and Click Continue.
On this Any Other Earned Income screen, enter a Description such as "201X Excess 401K Deferrals" Enter the amount of your loss and click Done.
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