What about excess contribution to a ROTH 401k?

[BabaPorsche]

All the answers so far are on traditional 401k.  How do you handle excess ROTH 401k contributions?  Where do you input into the program

[LinaJ2018]

Here are the steps (online):  

• Sign into your account, select Take me to my return
• To the right upper corner, in the search box, type in "other reportable income" and Enter
• Select Jump to other reportable income
• Next screen, Other Wages Received, select No to continue
• Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
• Next screen, Any Other Taxable Income? select Yes to continue

I also attach an older post for your reference.  Just change the year to 2018.    https://ttlc.intuit.com/replies/6725235

[BabaPorsche]

I am specifically looking for answer for Roth 401k. The explanation above is for traditional 401k. Since Roth contributions are not tax deductible, it would seem return of excess capital contribution before April 15 2019 also should not create additional income in 2018. The excess earnings (or loss) on the excess contribution will be taxable in 2019 I assume. The steps you explained treats the return of excess contribution as additional income for 2018, not as return of capital. I contact TurboTax tax expert by phone and he also cannot find a place to input the excess capital for the 2018 return. His observation is since the program recognized that I had an excess but did not compute a penalty nor prompt me for additional forms, it must have taken care of it in the background. Unfortunately we can’t verify that. Please help

[BabaPorsche]

I am specifically looking for answer for Roth 401k. The explanation above is for traditional 401k. Since Roth contributions are not tax deductible, it would seem return of excess capital contribution before April 15 2019 also should not create additional income in 2018. The excess earnings (or loss) on the excess contribution will be taxable in 2019 I assume. The steps you explained treats the return of excess contribution as additional income for 2018, not as return of capital. I contact TurboTax tax expert by phone and he also cannot find a place to input the excess capital for the 2018 return. His observation is since the program recognized that I had an excess but did not compute a penalty nor prompt me for additional forms, it must have taken care of it in the background. Unfortunately we can’t verify that. Please help

[LinaJ2018]

I would suggest you notify your plan administrator about removing the excess funds by April 15, 2019 (or an earlier date specified in the plan), of the amount to be paid from each plan.  Per IRS, the plan must then pay you that amount, plus earnings on the amount through the end of 2018, by April 15, 2019.  This is the same treatment as the excess salary deferral.  Please also visit <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p560.pdf">https://www.irs.gov/pub/irs-pdf/p560.pdf</a> - page 17 "Treatment of Excess Deferrals".

[BabaPorsche]

The reference you made above is again for Traditional deducted 401K contributions.  I don't believe it applies to Roth 401k contributions.  There is a separate section on Qualified Roth contributions on P18 but it does not discuss return of excess contribution before April 15 deadline.  The limits are the same but return of excess contributions of a traditional 401k will increase income in 2018. Return of excess contributions of a Roth 401k should not increase income since it was a non deductible contribution in the first place.  Only earnings on the excess contribution should be taxable income for 2019.  I don't remember where but there are rules on basis tracking if you inadvertently left the excess contributions in the plan beyond the April 15 deadline.  In which case, there are income consequences on the excess contributions.  I have already contacted the plan administrators regarding the excess contributions and it should be returned to me prior to April 15.  The issue remains if there is a form I need to fill out on turbo tax to indicate to the IRS that the excess has been removed and that there are no additions to income.