401K over contribution. How do I fille?

[RDD66]

2 companies with 2  W-2s produced an excess 401K contribution.  Received 2 1099-R forms after bringing this to their attention:   one to roll part of the overage to a traditional IRA (G in box 7) and one to identify the remainder as taxable income (8 in box 7.)  On the latter form, federal taxes (box 4) were withheld at 10%.  We contacted the employer with the W-2 overage to ask if a corrected W-2 was necessary.  They indicated they would not send a corrected W-2 and the original with the over contribution was the correct one.  I was told the 1099-R forms would correct this on my return.  Does anyone know if this is correct?  I've heard different answers on this question and I'm not sure how to file.  When I did a first run of my taxes on TurboTax the over-contribution popped up at the end as something that required my attention.  Trying to get some clarity here.

[DaveF1006]

It depends. First of all, the second 1099R that show the return of contribution, that should have a Code 8 in Box 7 showing that it is a return of contribution taxable in 2021. As a result, this 1099R is not taxable income.  Now you need to tell Turbo Tax you returned this contribution and you do this by:

1. Federal Taxes>deductions and credits>choose what you work on

2. Go to Retirement and investments>Traditional and Roth IRA Contributions

3. Select Update

4. Make sure the contribution reflect the amount of the contribution that was made for the account.

5. As you navigate through the questions, you will reach a screen that says, "Your XXX contribution is too high.  When you reach this screen, press continue.

6. This next screen tells you have a penalty but gives you an option to return the excess portion of the contribution.  Here is where you input the excess contribution that was given back.