Retirement tax questions

No, TurboTax will not automatically add the excess deferral to your wages you will follow the steps below to enter the excess deferral (you don't need to wait for Form 1099-R). The excess deferral will be reported on line 1h of Form 1040.

To enter the excess deferral in TurboTax:

1. Login to your TurboTax Account 
2. Click "Wages & Income" (under Federal) on 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 income not already reported on a Form W-2 or Form 1099" and click "Start"
6. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
7. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
8. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
9. On the "Any Other Earned Income" screen enter "2022 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".

If you receive the distribution of the excess deferral and earnings by April 15th then please note for the Tax Year 2023 tax filing due April 15, 2024: 

2023 Forms 1099-R will be issued reporting the excess.

• Form 1099-R with code P in box 7 can be ignored if you reported the excess as described above in 2022. 
• However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2023.

Please enter your W-2 as shown on the form. You can ignore the warning since you took corrective actions and you don't get a penalty calculated on excess deferrals.

1. Click on "Search" on the top right and type “W-2” 
2. Click on “Jump to W-2”

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