I made a mistaken contribution to my solo 401(k) and I need help figuring out how to deal with the correction.
Dec 27, 2017 I contributed $13,000 to my solo 401(k) at eTrade.
When I figured my taxes in April 2018, I decided that move was a mistake and wanted to remove the entire amount. I was told to request a Withdrawal of Excess Funds to Third Party to send the money back to where it came from. The money was eventually transferred back after many hoops were jumped.
However, during the 4 months the money sat in the 401K, it earned $357. eTrade eventually issued me a 1099-R. It shows a gross distribution of $13,357, and the taxable amount is $357 with code P (return of contribution taxable in 2017).
Since the earnings mostly accrued over 4 months in 2018 (not much during the four days of 2017), I thought this $357 would go on my 2018 tax return, which I'm working on now. But Turbotax (Home Biz 2018) tells me I should amend my 2017 to reflect this $357.
Assuming that's the right thing to do, is amending my 2017 straightforward? How would I proceed? Thanks very much for any help!
