401k over-contribute $681. I follow T_Tax instruct, withdrew xcess funds & listed $681 in1099-R. Still can't e-file because 1040A line 12b > 18,500 generates errors.

[glnow2005]

It won't let me e-file with 1040A line 12b being over $18,500.  Now that excess contribution ($681) amount has been distributed by plan admin. and listed as a 1099-R, is it OK to reduce the 401k contribution line on my W-2 by $681? 

My employer said they are not sending out a corrected W-2.  

Or do I need to keep the W-2 as is and will be forced to file by mail? 

[caseyrut]

https://ttlc.intuit.com/questions/4698409-excess-401-k-contribution-preventing-e-file

At the bottom of this post, it says “Solution: Unfortunately at this time, customer with an excess contribution will need to print and mail, despite following the Steps to Take to Remove an Excess Salary Deferral as listed above.” I was surprised to see this because I was able to efile last year with the 401k over the max.

[caseyrut]

You don’t change the W2, so you will just have to file by mail.

[taxy-maxi]

Turbotax messed me over on this too.  Thousands of people switch jobs and get excess contributions.  This is common stuff and shouldn't force anyone to paper file.  I spent four hours today trying to figure this out.  I had already paid $50 to e-file in two states -- money lost now that I'm forced to paper file.  

[taxy-maxi]

That's a ridiculous bug by Turbotax!

[caseyrut]

I agree, they should warn you but let you efile.

[glnow2005]

Last question on this, in the turbo tax instructions on how to fill out the 2019 1099-R in 2018 tax forms*,  it says to use Code P?  Wouldn't Code 8 be more appropriate?     


*  Report the excess deferral on your 2018 return in the Income section for Retirement Plans and Social Security whether or not you received a Form 1099-R before you file your return. Enter as much information as you can. Report the excess deferral amount in boxes 1 and 2a, and use code P in box 7. Indicate that this is a 2019 Form 1099-R.

[caseyrut]

I think the codes are confusing, maybe they didn’t update the year for code P, but it worked once I answered the calendar year question. You can always enter it to see what it does and delete and start over.
I filled it in how my 1099-R was with a “P” and then TurboTax asked what calendar year, which mine was 2019. I knew it worked because it decreased my refund (since my taxable income increased).
The earnings on my distribution has a separate 1099-R and that one had a code 8, for calendar year 2019. This one did not change my taxable income and I’ll have to input it next year.

Note: I overcontributed to 401k for 2018, but the amount wasn’t taken out until this February (due date is by April 15th I believe). The 1099-R forms say 2019 since that was when it was distributed. The over contribution is taxable in 2018 but the earnings not until 2019.

[caseyrut]

I saw an update on this issue.

“TurboTax is aware of the e-filing issue that you are having and is currently working on a solution. An update to fix the issue is expected to be released around 4/5/2019.  

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.”

https://ttlc.intuit.com/questions/4698409-excess-401-k-contribution-preventing-e-file

This issue is scheduled to be fixed in an update that is currently planned to be released on 4/5/2019.

Please click here to receive email notifications when any updates related to this issue become available.

[glnow2005]

Thanks, they are cutting it a little close.  But glad I procrastinated on actually doing the paper filing.  We'll see what happens.  

[glnow2005]

OK, so an update came out yesterday 04/04 and still getting the same problem with efiling.  Let's go Turbo Tax!

[glnow2005]

"Additional interview screens have been added to make the process of correcting excess contributions easier and less confusing.

Unfortunately,  customers who had excess 401(k) contributions withheld will need to paper-file, even after taking the corrective steps."


So basically your promise of  a fix for e-filing was BS, thanks Turbo Tax!   How about refunding the cost of the e-filing from my original purchase?