@RussWill wrote:
Thanks for the prompt reply macuser_22! My apologies for the earlier typo.
To clarify, I received two 1099-Rs. One is for the return of the excess contributions to a Roth 401k of $2666.66 and has code P in Box 7 with $2666.66 in both Box 1 and Box 2a. The 2nd 1099-R is for the earnings on the excess contribution of $1.74 and has code 8 in Box 7 with $1.74 in both Box 1 and Box 2a.
Based on the specifics of your wording, it appears my plan sponsor (VOYA) hasn't properly identified my 401k contributions as being "designated Roth". If so, it appears the amount in Box 2a of the 1099-R with a code P for the excess contribution would be zero, correct?
If so, is this something I need the plan sponsor to correct and resend a revised 1099-R showing zero in Box 2a? Or...since there's nothing to report/file for a return of excess contribution to a Roth 401K, can I ignore the fact there's an amount in Box 2a? Are there any future ramifications for this between me and the IRS in the future when I start making tax free withdrawals from this Roth 401k? In other words, will the amount in Box 2a corrupt my plan in the eyes of the IRS and restrict future tax free withdrawals?
Thanks in advance for any advice you can provide.
Are you sure that this was a 401(k) Roth (Designated Roth) and not a Traditional 401(k) plan? Your 1099-R's appear correct for a non-designated Roth. They are reporting an ordinary 401(k) excess in which case you enter the code P 1099-R in an amended 2019 tax return and the box 2a amount will be added to your 2019 wages.
Check your 2019 W-2 box 12 - if code D then it was a ordinary 401(k) contribution. 401(k) Roth (designated Roth) will have a code AA in box 12.
**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.**
