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Level 2
posted Mar 27, 2023 3:49:14 PM

401k excess contribution and 1099-R with code P

Hello,

 

I had excess 401k contribution in the year 2021, less than $100, I received the check and withdrew excess contribution amount in April 2022, but I already filed 2022 tax filing at that time, so I did nothing since then. 

 

Now, Fidelity sent me TWO 1099-R forms, one with code "P" (for excess contribution withdrawal) and 2nd 1099-R with code "8" (for the gain on excess contribution). I included both 1099-Rs("P" and "8" in my 2023 tax filing. The Turbotax says, I have to file amendment my 2022 tax filing.

 

Can someone help clarify what should I do? should I amend my 2022 tax filing and include 1099-R form with code "P"? or what's the right approach? 

 

Thank you for your help in advance!

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1 Replies
Expert Alumni
Mar 27, 2023 4:13:55 PM

You can do one of two things:  1) File an amended return to include the 1099-R with Code P, or 2) Do nothing.  Sooner or later, the IRS will send you a letter proposing a change to your tax return based on the 1099-R information that was filed with them by the 401(k) custodian.  It won't be lot, but you will also be billed for additional tax, penalty, and interest.  I would go ahead and file the amended return.