I have a question regarding the 2023 1099-R I received from my 401K Plan administrator.
To give the background of this 1099-R, we had overcontributed to my 401K in the year of 2022. However, I caught the mistake early in the year and I was able to get it out of 401K before the tax deadline. I used the method describing in other posts by @MinhT as below to fill out the excess contribution when filing for2022 return.
Below is how to do this in TurboTax:
- Click on Federal in the left-hand column, then on Wages & Income
- Under All Income, scroll down to Less Common Income
- Select Miscellaneous Income and click Start
- Select Other income not already reported on a Form W-2 or Form 1099 and click on Start
- Answer the question "Did you receive any other wages? Yes
- Click through the questions till you get to Any Other Earned Income
- Answer Yes to Did you earn any other wages?
- Indicate Other as Source of Other Earned Income and click Continue
- For the description enter "2022 Excess 401K Deferrals" and click on Done
Now, I was expecting to get two 1099-Rs for the year of 2023 - one for excess contribution and other for earnings. However, I got only one. I believe it is a combined for excess and earning. It has code E in box 7 and taxable amount in 2a is same as gross distribution in 1. It also shows some Federal and State tax withheld in boxes 4 & 14.
My question is if I enter 1099-R as it is for the year 2023, will I be paying taxes on both earnings and excess? How do I make sure that I will be paying taxes only on the earnings in 2023 (as I already paid taxes in 2022 for the excess amount).
Thanks.
