Retirement tax questions

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.

The excess deferral is reported on your 2023 return and the earnings will be reported on your 2024 return. You will get two 2024 Forms 1099-R in 2025:

• Form 1099-R with Code P in box 7 can be ignored if you reported the excess on your 2023 return when you filed it. 
• However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2024.

To report the excess deferral on your 2023 return you can either enter Form 1099-R with code P as described in the TurboTax instructions or you can use these steps:

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down "Less common income" and click "Start" next to "Miscellaneous Income, 1099-A, 1099-C"
4. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
5. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
6. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
7. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
8. On the "Any Other Earned Income" screen enter "2023 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".