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ragz
New Member

Elective Deferrals to 401k is more than the allowed $18500 from two W2's. Turbotax is failing to eFile even after submitting 1099R.

I have multiple W2's and contributed couple hundred dollars more than the allowed limit. I'm not getting distributions since the plan date to contact is past their scheduled date. 

Is paying double tax is the only option? 

Is Turbotax planned to fix the excess elective deferral issue with 1099R? 

Will I get a refund if Turbotax cannot fix the issue?

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1 Reply
Rachel_W
Expert Alumni

Elective Deferrals to 401k is more than the allowed $18500 from two W2's. Turbotax is failing to eFile even after submitting 1099R.

Yes, if you are unable to have the excess contribution distributed, double tax is the only option.  You will be taxed on your 2018 Tax Return and then again when you withdraw the funds in the future. Check out IRS Pub 525 for more details:  https://www.irs.gov/pub/irs-pdf/p525.pdf.

You need to report the excess contributions on Line 1 of your 2018 Tax Return by following these steps in TurboTax Online:

  • Login to your TurboTax Online Account
  • Click "Take Me to My Return"
  • Click "Federal" from the left side of your screen
  • Scroll down to "Less Common Income" and click "Show More"
  • Select "Miscellaneous Income" and click Start or Update
  • Select "Other income not already reported on a Form W-2 or Form 1099" and click on Start
  • Answer the Question "Did you receive any other wages?  Yes
  • Click "Continue" through the questions until you get to "Any Other Earned Income"
  • Answer "Yes" to "Did you earn any other wages?
  • Indicate "Other" as Source of Other Earned Income and click Continue
  • For the description enter "2018 Excess 401K Deferrals" and click on Done 

NOTE:  It was just announced that an update is currently planned for April 12th, 2019 to resolve this e-filing issue.   You may still see a warning about the excess contribution, but you should be able to e-file.  You can check out this TurboTax FAQ for more information:  Excess 401(k) Contribution Preventing E-filing

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