dmertz
Level 15

Retirement tax questions

Then you did the return of contribution correctly and you are not paying taxes twice since the taxable amount in box 2a of the Form 1099-R from the traditional IRA is zero.

 

In addition to the 401(k) issuing a Form 1099-R reporting the amount that was eligible for rollover, they should also have issued a code-8 Form 1099-R for the portion that was the excess elective deferral and was subject to tax, the only amount that is taxable, taxable because it was excluded from box 1 of your W-2.  You enter all of these forms 1099-R with the result being that Form 1040 line 4b should include none of these distributions and line 5b should include only the amount from the code 8 Form 1099-R from the 401(k).