My husband over contributed to his 401K during 2022 due to switching jobs. We caught the error due to Turbo Tax and have received a distribution prior to filing our 2023 taxes of the excess contribution.
I am confused as to how to report the excess contribution:
Do I report it as if I have received a 1099-R for the excess contribution (even though I have not yet received it and assume I will not until 2023)?
Or do I report it as other "Less Common Income - wages not report on W-2"? I have seen both ways noted within TurboTax.
Once I record the excess contribution as income will TurboTax continue to highlight the excess 401K contribution, and will that be an error within my taxes or allow me not to file?
Thanks!
