Retirement tax questions

You must include the excess deferral to the 401(k) in your wages in the year the excess deferral happened. You do not include the 401(k) Roth excess. The earnings will be reported in the year of distribution, therefore the earnings will be reported when you get the 2025 Form 1099-R with code 8.

Please follow the steps below:

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 "2024 Excess 401(k) Deferrals" for the description, enter the amount of $5,000 (from the 401k only not 401k Roth) and click "Done".

You will the excess deferral on line 1h on Form 1040.

Please note for the Tax Year 2025 tax filing due April 15, 2026: 

• Form 1099-R with Code P in box 7 can be ignored if you reported the excess as described above in 2024. 
• Form 1099-R with code P and B for the 401(k) Roth excess can be ignored.
• However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2025.

Please see Pub 525 for additional information.