How to Report Loss on Excess 401k Contribution

[mrcrull]

I mistakenly over contributed to my 401k due to multiple employers.  I recognized this mistake, had the excess contribution returned, and know how to report this excess contribution on my tax return for the year thanks to this forum.  What I was hoping someone can help with is how to report the loss attributed to excess contribution.  My excess contribution was returned minus the loss while invested in the plan.  Can I report this loss as a negative amount on the “other income” line of my tax return or is there another way to report the loss?

Thanks in advance for your help. 

[dmertz · Accepted solution]

See IRS Pub 525 where it says,

Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. Include the loss as a negative amount on Schedule 1 (Form 1040), line 8z, and identify it as “Loss on Excess Deferral Distribution.”