Excess Pre-tax 401k Deferral

[bollfamily]

My wife had a job change in 2024.  In November she realized between the 2 companies she had exceeded the deferral limit for her age and immediately notified the 401k company for one of the accounts.  They refunded her the overage amount plus earnings on it and we received a 2024 1099R from the 401k company.  The total in both Boxes 1 & 2a on the 1099E are the same amount and the distribution code in box 7 is 8.  When I enter this 1099R in the online version of TurboTax Deluxe I've entered exactly as it shows on the 1099R.  When I get to the end of the Income section and click Continue, the next page the comes ups says we need to recheck her retirement contributions.  I've rechecked multiple times now and everything is entered correctly so I've selected Continue figuring it was entered correctly.  When I get to the income summary, it shows this retirement income as nontaxable when it's clearly taxable on the 1099R and was entered as such when I entered the amount from box 2a.  I also confirmed the Distribution Code of 8 was entered which is the correct code.  I've removed and re-added this 1099R twice now hoping that would correct it.  I'm hesitant to contact Live Tax advice as I don't want to incur the cost for what appears to be a software issue.  Curious if others have run in to this issue and how they handled it.  Thanks

[DanaB27 · Accepted solution]

Please check line 1 h on Form 1040  to see if the amount is correctly entered there. If it is entered on 1h on Form 1040 then you can ignore the summary screen which shows lines 4 and 5 of Form 1040.

To preview Form 1040 in TurboTax Online:

1. Click on "Tax Tools" in the left menu
2. Click "Tools"
3. Click "View Tax Summary" in the Tool Center window
4. Click on "Preview my 1040" on the left

[bollfamily]

Yes, it's reflected in line h, thanks so much!