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New Member
posted Apr 5, 2020 2:07:23 PM

Excess contributions to 401K

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.

 

 

 

 

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3 Replies
Expert Alumni
Apr 5, 2020 2:30:02 PM

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).

Returning Member
Apr 9, 2020 8:29:09 AM

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

Expert Alumni
Apr 9, 2020 1:17:51 PM

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)