Retirement tax questions

For excess 401K deferrals the gain/loss is reported in the year received.  If you received the gain/loss in 2022 you would report it on your 2022 Income Tax Return.  If you received the gain/loss in 2023 you would report it on your 2023 Income Tax Return.

The excess deferrals are taxable in the year for which they were deferred.  So any deferrals returned are taxable on the tax return for the year in which you deferred that money.

So the excess deferral returned for 2022 would be included on your 2022 tax return.  The $500 loss would be included on the tax return for the year in which it was received.  So if you received the loss in 2023, it would be reflected on your 2023 tax return. 

Depending on what the extra  $386 was attributable to, would determine what year you would  claim it.  If this $386 is additional gain/loss then it would go on your 2023 tax return because you received it in 2023.  If it was additional excess deferrals returned, that were for deferrals in 2022 , it would go on your 2022 tax return.

Your loss on your excess deferral should be reported in TurboTax as per DanaB27.  

Assuming you made the excess deferral in 2022 and received it in 2022 all you need to do is enter your Form 1099-R. 

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Enter the information from your 1099-R

If this was a 2021 excess deferral returned before April 15th, 2022 then the 10K excess deferral should have been reported in your 2021 tax return and the loss will have to be reported on your 2022 tax return:

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Scroll  down to "Less Common Income" and click "Show More"
4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
5. Select "Other reportable income" and click "Start"
6. Answer "Yes" to "Any Other Taxable Income?"
7. Enter "Loss on Excess Deferral Distribution” and enter the loss as a negative number (-$500)

Click here for more information regarding reporting excess deferrals.

[Edited 02/15/2023|1:29 pm PST] @vsun