401k Excess Contribution

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In 2021 I worked for 2 different employers, A and B.

I maxed out my 401k at employer A.

Then I moved to employer B who offered a Roth 401k so I maxed out there as well.

I contacted employer A and had them process a return of excess contribution, which I received in 2021.

So, for 2021 I have a W2 from employer A and B both showing box 12 contributions of 26k. I also have a 2021 1099-R from employer A for the returned funds (with 10% withholding).

In following the Turbotax instructions I am taxed twice on this money, once by entering the 1099-R and once by entering the "extra" 26k into "Any Other Earned Income" per the TT instructions.

The question then is if Employer A should issue an amended W2 without the box 12 amount or if I should exclude the 26k from "Any Other Earned Income" in TT or if there is another solution. Thanks!

TurboTax Home & Biz Windows

DanaB27Answer

Employee Tax Expert

Yes, do not enter the distribution under "Any Other Earned Income" (these instructions don't apply since you received your 1099-R). Please remove that entry, you only need to enter your 1099-R.

You do not need a corrected Form W-2.

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DanaB27

Answer

Employee Tax Expert

Yes, do not enter the distribution under "Any Other Earned Income" (these instructions don't apply since you received your 1099-R). Please remove that entry, you only need to enter your 1099-R.

You do not need a corrected Form W-2.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"