How to include 2018 401k excess contribution (withdrawn in 2019) in tax prep? I uploaded 1099 but turbotax calculations show excess contribution, asking me to review

[prigupta1]

I changed job during 2018 and my 401k plan was over contributed by $120 (total of $18,620).  Per suggestion by the Turbotax software, I have withdrawn the excess contribution in 2019 and also received a 1099-R, which shows Box 7 code as P and Calendar year as 2019.  I have uploaded this 1099-R to turbotax as well.  However, during the Federal Review step of tax preparation, TurboTax is still asking me to review the data as the total contribution still shows as $18,620.

What steps should I take?

[Rachel_W]

You have taken the right steps having the excess distributed and including the 1099-R on your 2018 Tax Return.

At this point, I think you are running into an e-filing issue within TurboTax.  An update to fix the issue is expected to be released around 4/5/2019.  You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.

Be sure to sign up for updates to be alerted as soon as there is a solution.  If you do not want to wait for an update, you have the option to paper file your tax returns as this is only an e-filing issue.

[prigupta1]

Has this issue been fixed yet?