@sr9984 wrote:
When I go to the link above I get a 'Turbo Tax support has moved' error. Do you know where the article is in the new Turbo Tax support?
Also, I've noticed on Turbo Tax 2019 I'm not getting any unresolved over-contribution error despite having over contributed to a Roth 401(k). Has this error been resolved? Is Turbo Tax silently adding a fee or penalty somewhere I need to take care of?
I have received my excess 401(k) contribution back from Fidelity, but not sure what I do next. Since it was a Roth, I don't need to report excess income as I've already paid tax on the contribution. How do I indicate to the IRS that I overcontributed to a Roth, but I've corrected the issue?
1) The link for the 2018 error does not exist and that was only a problem in the 2018 software and has been fixed.
2) Nothing about 401(k) Roth contributions go on your tax return other than the amount shown on yiur W-2 box 12 by your employer. You must resolve any over contributions with your employee. You only report a return of that excess in TurboTax if you have removed it. Usually you will receive a 1099-R in Jan. of the year following the removal.
3) Depending on if the excess contribution and earnings were returned *in* 2019 or *in* 2020 determines what to do. Since it is a after-tax Roth, there is not need to enter the contribution amount itself as income because you already paid the tax. If returned *in* 2019 they you should have received a 2019 1099-R already. If returned *in* 2020 the you will receive a 2020 1099-R with a code 8 in box 7 that will go on your 2020 tax return next year. Earnings are taxable in the year returned.
**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.**
