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amers_cs
New Member

Hi we accidentally contributed $350 more than we were supposed to into our 401K our plan administrator is no longer accepting requests to withdraw the excess. Can someone let me know what my options

 
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2 Replies
Rachel_W
Expert Alumni

Hi we accidentally contributed $350 more than we were supposed to into our 401K our plan administrator is no longer accepting requests to withdraw the excess. Can someone let me know what my options

Since you are unable to have the excess 401(K) contribution of $350 distributed, you will be taxed on this amount twice.  Once on your 2018 Tax Return and then again when you withdraw the funds in the future. Check out IRS Pub 525 for more details:  https://www.irs.gov/pub/irs-pdf/p525.pdf.

You need to report the excess contributions on Line 1 of your 2018 Tax Return by following these steps in TurboTax Online:

  • Login to your TurboTax Online Account
  • Click "Take Me to My Return"
  • Click "Federal" from the left side of your screen
  • Scroll down to "Less Common Income" and click "Show More"
  • 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 "Continue" 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 "2018 Excess 401K Deferrals" and click on Done 

NOTE: There is currently an e-filing issue within TurboTax related to excess contributions so you will need to mail in your return.  You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing


Rachel_W
Expert Alumni

Hi we accidentally contributed $350 more than we were supposed to into our 401K our plan administrator is no longer accepting requests to withdraw the excess. Can someone let me know what my options

@amers_cs   Just announced:  An update is currently planned for April 12th, 2019 to resolve this issue. You may still see a warning of excess contribution, but you should be able to e-file.
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