Excess 401K contribution, withdrawn, W2 correction? need Taxreturns help

[sribasappa]

1. I made ($3250.00) excess 401K contribution for 2017 to my fidelity account through employer

2. I requested my employer 401k group manager make a request to withdraw excess contribution from my 401K account

3. Fidelity sent me the check 3250 in Jan 2018

1. Employer issued W2, that has the amount inlcuding excess contribution

2. Employer needs to amend my W2 ?,  to show the correct amount of 401K contribution minus excess contribution withdrawal ?

3. I haven't received the 1099R from Fidelity, for excess contribution withdrawal

Please give me the instructions, how to include it in the tax returns.

[Rachel_W]

No, your Employer does not need to amend your W2, you should input it into TurboTax exactly how it appears, with the excess deferral to your 401(k).

You can report the refund of the excess contributions to your 401K on Line 7 of your 2017 Tax Return without a Form 1099-R by following these steps: 

• Click on the "Federal Taxes" Tab
• Click on the "Wages & Income" Tab
• Click on "I'll choose what I work on"
• Scroll down to "Less Common Income"
• 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 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 "2017 Excess 401K Deferrals" and click on Done

You will receive a 2018 Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested above.  However, the earnings (if any) will be reported on a separate 2018 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2018 tax return.

[natalieminyu]

If I am amending my 2017 return to include 2017 Excess 401K Deferrals as Source of Other Earned Income, would I need to send any documentation along with the amended return in the mail?

[cmulroy]

I still get an error when I rn smart check after completing these steps.  Should I change my total contribution amount to 18500?

[macuser_22]

No.  You cannot change the W-2 issued by your employer.

TurboTax has released a FAQ on this issue - the answer is to print and mail the return.
Excess 401(k) Contribution Preventing e-File

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/7327357">https://ttlc.intuit.com/replies/7327357</a>

[cmulroy]

Seriously??  I am unable to efile because of this???  This is unacceptable.  Can you fix this bug in a release sometime between now and April 15th?

[cmulroy]

Will Turbo Tax be issuing an update to the SW to allow me to efile?  If not, I will need a partial refund of the cost of the product, to cover the additional cost of printing and mailing.  Additionally, my state only accepts efile (that's what TT says) so I am not sure how I will even be able to do that for the state portion???  

[macuser_22]

Nobody in this public user forum has any information if TurboTax will anything at all.

Here is a TurboTax FAQ for contacting customer support.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number">https://ttlc.intuit.com...>

[cmulroy]

ok thanks- I thought this forum was also curated by TT, I will contact them

[paghosh]

This is really painful. After all I bought turbotax to avoid the hassle of sending return by mail Really stupid bug that needs to be fixed

[nilsalbertsen]

Having the same problem. This is unacceptable

[macuser_22]

This is a year old question.   For 2018, this problem is scheduled for the 4/5/2019 update.
Sign up for notification in this FAQ:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/7327357">https://ttlc.intuit.com/replies/7327357</a>

[nilsalbertsen]

Yeah just called support and they said the same thing! Should be fixed next week!

[401kDeferral]

Same issue here,  glad to see Intuit is taking this seriously as I found my self incredulous upon hitting that exception. There is no reason to mail in a return for any reason frankly, TurboTax should just refund customers if they can't file it electronically - unless of course their tax situation is so unusual that the gov't won't allow it.

[401kDeferral]

Same issue here,  glad to see Intuit is taking this seriously as I found my self incredulous upon hitting that exception. There is no reason to mail in a return for any reason frankly, TurboTax should just refund customers if they can't file it electronically - unless of course their tax situation is so unusual that the gov't won't allow it.