Excess contributions to 401K

Forum|Forum|6 years ago
April 5, 2020
3 replies
13 views

Good Afternoon

I hope you are doing well during this pandemic.

In 2018 I contributed more than the max allowed 401K contribution due to having 2 employers.

I did include the taxable overage on my 2018 taxes (although I think I used a wrong figure and will likely have to amend those taxes).

I did receive 1099 R forms and did populate all the boxes needed for my 2019 returns on my turbo tax forms. I did have a loss from the excess deferral that I took out last year. My question is where to report this amount in my 2019 return. The letter fromFidelity states " the loss attributable to your excess deferral may be reported as a negative amount on the Other Income line of your 2019 Federal and State (if applicable) income tax returns." I tried to place this value in different areas of other income, but keep receiving errors. What is your recommendation.

Thank you for your assistance.

DavidD66

Level 15

To report as "Other Income" in TurboTax, while in your return:

Type "Other Income" in the search window
Click on "Jump to Other Income"
Enter the information from your Form 1099-MISC, and click on Continue
Enter a description such as "Loss on Excess Contribution" and click on Continue
On the screen with "Does one of these uncommon situations apply?", indicate "None of these apply"
Answer "No..." to "Loss on Excess Contribution involve work that's like your main job?"
Answer "I got it in 2019" when asked "How often did you get income for Loss....?"
Answer "No, it didn't involve an intent to earn money."

The amount will be reported on line 8 of Schedule 1 (Form 1040).

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B_T007

Level 2

where would you record a loss attributable to an excess deferral?

MinhT1

Level 15

You would report it in Other Reportable income as a negative number for a loss.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income on top of the screen
Scroll down to All Income, locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.
Enter your loss as a negative number and describe it as Loss on excess contribution to 401(k)