How do I amend my 2020 Federal Return for excess 401k contributions that were NOT returned and won't be?

[Pinevalleyite]

I indicated in TurboTax on my 2020 return that I would be getting the excess returned on a 1099 the following year. However, employer made a mistake and didn't return by April 15 of this year so now cannot. I can't find where in TurboTax amend my taxes that I can indicate that so I can calculate what I now owe on the excess.

[Opus 17]

Unless timely distributed, excess deferrals are (1) included in a participant’s taxable income for the year contributed, and (2) taxed a second time when the deferrals are ultimately distributed from the plan. See IRC Sections 402(g)(1) and 402(g)(2) and Reg. Section 1.402(g)-1(e)(2). A participant who fails to receive a distribution of the excess deferrals does not receive basis in his pre-tax deferral account equal to the amount of excess deferrals. See IRC Section 402(g)(6).

https://www.irs.gov/retirement-plans/consequences-to-a-participant-who-makes-excess-deferrals-to-a-4...

Just amend your tax return and go over each section again, changing your answers as needed.  When you review your W-2s, Turbotax should notify you that you appear to have excess 401(k) deferrals (they should be listed on your W-2s in box 12 with code D). Change your answer from "I will remove the excess" to "I won't remove the excess."  The tax should be recalculated and will lead to extra tax being due when you submit the amended return. 

[Pinevalleyite]

I was trying to do that but I couldn't get TT to ask me that question again. I remember it calling that out when I was doing the taxes. I'm thinking maybe if I remove the W2 and then readd it, TT will ask the question. It seems when doing an amended return, it doesn't go through the same steps or at least you don't have all the sections on the left to bounce around it.

[Opus 17]

@Pinevalleyite 

Are you using the online or desktop software?

I agree deleting the W-2 and entering again wi probably trigger the question.  If you are using the desktop software, you may be able to trigger it in Forms mode.  I can check later with my own copy.  

[Pinevalleyite]

I tried removing and readding my W2 in the amended mode and I didn't get the message saying I had too much deferred and can't find out how to get to the question I saw when I went through the process the first time. At that time, TT told me I deferred too much. I said I was getting it back by April 15th but the employer was unable to do so. I need to be able to reverse when I said, "Yes, I will be getting it back" to which TT told me at the time to indicate I'd be getting a1099 something in 2021. I can't seem to reverse that but when I started the amendment the first time and it reverts all back to $0 to keep track, I removed a document, maybe the proposed 1099 for the following year? It then said I was OWED money from Federal. I can't get that to go back to $0 even though I didn't save the amended, just cancelled it.