Retirement tax questions

No, the taxes were withheld in 2023 and therefore will be applied to your 2023 taxes paid. You will need to enter the 2023 Form 1099-R on your 2023 tax return to get the taxes withheld in 2023 applied to 2023.

You will enter the full excess deferral of $1,269.17 on your 2022 tax return:

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 of $1,269 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: 

Generally, Form 1099-R with code P in box 7 can be ignored if you reported the excess as described above in 2022 but since you had taxes withheld you will need to enter it on your 2023 tax return. TurboTax will know to ignore the distribution because of the code P but apply the taxes to 2023.

The loss will have to be reported on your 2023 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 (-$115)

Please see Pub 525 for additional information.

@fibraid