I changed job at 2017, 401k plan over contributed; I had withdrawn the excess deferral. But no revised W2 & no 1099-R until 2019, How can I do on my 2017 tax return?

[april15]

Because I changed job at 2017, my 401k plan was over contributed, but now I had withdrawn the excess deferral. I know this overpayment should be report as my 2017 income, but no revised W2 I can get, and I can't receive Form 1099-R until 2019, if I use the original W2 for 2017 tax return, how can IRS know I had withdrawn the overpayment from 401k account? How can I do for my 2017 tax return? Could you step by step teach me the detail tax treatment of excess contribution? Thank you!

[Rachel_W · Accepted solution]

No, your Employer does not need to revise your W2, you should input it into TurboTax exactly how it appears, with the excess deferral to your 401(k).

You can report the refund of the excess contributions to your 401K on Line 7 of your 2017 Tax Return without a Form 1099-R by following these steps: 

• Click on the "Federal Taxes" Tab
• Click on the "Wages & Income" Tab
• Click on "I'll choose what I work on"
• Scroll down to "Less Common Income"
• Select "Miscellaneous Income" and click Start or Update
• Select "Other income not already reported on a Form W-2 or Form 1099" and click on Start
  
• Answer the Question "Did you receive any other wages?  Yes
  
• Click through the questions until you get to "Any Other Earned Income"
• Answer Yes to "Did you earn any other wages?
• Indicate "Other" as Source of Other Earned Income and click Continue
• For the description enter "2017 Excess 401K Deferrals" and click on Done

You will receive a 2018 Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested above.  However, the earnings (if any) will be reported on a separate 2018 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2018 tax return.

[LaJolla]

I have a similar issue---- I over contributed to my 401K by 420.00 in Dec 2017 then 10 days later took out the excess Jan 2018.

When I did my 2017 taxes I entered the following:
Total 1099-misc income on my schedule C (this included the 420.00 excess amount that I had erroneously contributed) .
For my 401K contribution I entered the amount I contributed After I removed excess
i.e. * I did NOT enter the original amount I contributed prior to the withdrawal.

I had initially attempted to enter the original amount I had contributed, but when I did so I got an error message stating that the contribution was too high, which I already knew and was the reason why I had taken out the excess.

On my 2017 taxes, I did not enter the excess 420.00 as other income, but rather included as part of my 1099-MISC income since this was where it was originally derived.

I got a 1099-R for the excess contribution in 2018 Box 1 has 420 listed all other boxes are blank except box 7 which has a P.

I am uncertain if I did this correctly or if I have to submit anything to correct this. Any advise??