@Anonymous wrote:
If I made the excess contribution to a 401k plan unknowingly (because i started a new job and the gross contributions of my previous plan and this new one exceeded the max), rolled both into a traditional IRA, and then filed my taxes... how do i correct it? I have requested an excess deferral payment from my plan administrator, but how do I report this to the IRS since I have already filed my federal taxes? Do I need to file for an amendment?
@Anonymous - This is 3 year old post (I know it says 6/3/2019 but that is the date that it was migrated from the old TurboTax forum and lost the real date).
I would suggest that you ask a NEW question of your own to get other responses.
I am not sure of the answer, but I suspect that since it has already been rolled to an IRA then it cannot be removed by the 401 plan administrator, but must still be reported on the tax return in the year that the excess was contributed as taxable wages. That means that when you take an IRA distribution you will again pay the tax on the distribution. the double tax it the penalty for not removing the excess in a timely fashion.
2019 Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)
Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.
This will add the returned excess to your 2019 wages on line 1
@dmertz - any comments?
**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.**
