If you overcontributed to your 401(k) in 2018 and the excess was distributed in 2019, you need to include the excess contribution to your 401(K) on line 1 of your 2018 Form 1040 by following these steps:
- Open your return
- Click on
the "Federal Taxes" Tab
- Click on
the "Wages & Income" Tab
- Click on
"I'll choose what I work on"
- Scroll
down to "Less Common Income" and
click "Show More"
- Select
"Miscellaneous Income" and
click "Start or Update"
- 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
"Continue" through the questions until
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 "2018 Excess 401K Deferrals" and
click on "Done"
You will receive a Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested above. However, the earnings (if any) will be reported on a separate 2019 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2019 tax return.
Unfortunately, you will need to paper file your return this year due to the excess 401(K) Contributions.
Please comment below if this does not answer your question so I can assist you further.
