I read on other posts what to do when over contributing to a solo 401K. I am planning on proceeding with the option laid out below but have a question regarding it.
If I have already made the withdraw of the excess 2020 contribution from my individual 401K... Can I enter the 2020 contributions to individual 401K in the "elective Deferrals" box as my Contribution less the excess withdraw I've already done? I.e (it would equal the amount of "maximize contribution to individual 401K). And then keep the amount of the excess deferral blank and add the explanation "2020 Excess 401K Deferrals" in the step below? Or does the amount of the excess have to be filled out and my 2020 contributions to individual 401K in the "elective Deferrals" would be the figure of the total amount including excess that I contributed.
And if there were any earning that were returned in 2021 then the earnings will be reported on a separate 2021 1099-R with a code 8 that goes on my 2021 tax return - I would not enter the earnings on my 2020 tax return. Thanks for your help!
or 2)
Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
