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Retirement tax questions
@TTUserfromCA - You are confusing two things. The "error in box 12" on the W-2 is a TurboTax bug that has NOTHING whatsoever to do with reporting the excess contribution as taxable income. TTMarilynG's method is the preferred method because there is less room for making an error on the 1099-R. (A 1099-R code D is for an annuity and is not correct.) Either a 2019 1099-R with a code P or TTMarilynG's method will put the excess on line 1 on the 1040 form. It has NO effect on the W-2 or the W-2 error.
As long as an excess in in box 12 on the W-2, TurboTax will tell you that it is excess, which it is. The error message is a warning in case you mis-entered the box 12 amount, but since you it is actually an excess then ignore the error message.
As long as an excess in in box 12 on the W-2, TurboTax will tell you that it is excess, which it is. The error message is a warning in case you mis-entered the box 12 amount, but since you it is actually an excess then ignore the error message.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
‎June 4, 2019
8:51 PM