@ThomasS2020 wrote:
Hi - I had a follow-up question to this based on one of the very helpful points you noted. I find myself in the same situation - I over-contributed to Roth 401k accounts for TY2019. The excess contribution amount was returned to me in March 2020, in advance of the April 15 (assuming no coronavirus) deadline. I understand that that next year I will receive a 1099R, however I am unsure of what, if anything, I need to do to complete my TY2019 return. You mentioned in your message that all that is necessary now is to indicate that the excess contribution has been returned prior to April 15th. Would you mind explaining how to do this?
Thanks!
If this was a 401(k) Roth then that is after-tax money which was never deducted so there is nothing to report for the return. However, it that excess generated any earnings while in the account then that is taxable income for the year returned - 2020. You will get a 1099-R next year that reports that on your 2020 tax return.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
