Multiple employer TY2025 traditional and Roth 401k plan contributions.
Excess Roth 401k contribution identified after YE2025 but before 4/15/2026, requested distribution of excess Roth 401k contribution and associated earnings.
Per https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-r/401-k-excess-deferral/L9XUjV..., I expect to receive a 2026 1099-R (in early 2027) showing Code 8 in box 7 for the earnings, which would be taxable in TY2026 but the excess contribution was already taxed and should not be coded as taxed again.
The link above recommends reporting the 2025 excess deferral on the originally filed 2025 return. When I followed the instructions, TurboTax treated the deferral as taxable in 2025, and there was no way of indicating that the excess deferral was related to an already taxed Roth 401k contribution.
Please advise how to address this on the 2025 return.
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(coincidence that i also have a trad+roth 401K question and both of our user ids end in 94)
Did you check and confirm in your 401K accounts that all the excess withdrawals only came from the Roth 401K account ? If the whole amount only came from the traditional 401k side, then it makes sense that the whole excess should add on to income for 2025. If the excess came from both trad+roth 401K - then I am hearing that even in that case, the full amount should go on the 2025 return.
I also have a very similar situation with excess that went to both trad+roth 401k, but in my case I missed the april 15th deadline and have to deal with double taxation ( or triple with roth side) case
hopefully helpful experts on this "excess deferral" topic like @dmertz or @DanaB27 or@Opus 17 can respond to your question and mine.
The link of the FAQ you included is for Traditional 401k excess deferral and does not apply to the Roth 401k excess. You do not need to add the Roth 401k excess to your wages on your 2025 return. You will only report the earnings on your 2026 return. Please Pub 525 for additional information.
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