I had excess 401k money withdrawn in 2016. I am told a 1099 will be sent to me later in 2017. Do I report the returned funds on my 2016 or 2017 filing?

[ChristinaS · Accepted solution]

If its a 2016 "event", you need put this on your 2016 return. If you withdrew the excess contribution in 2016, you really should have the form already. However, you can proceed without it. If you receive a 2017 tax form for a 2016 event, you'll need to amend your 2016 return to add it. If you wait for that form instead of "pretending" you have it already, you'll owe interest (and penalties) when you amend your 2016 return to add it.

Here's how you can report the 2016 return of excess now, so you don't have to amend months or a year later.

• Go to Wages and Income- Retirement Plans and Social Security
• Start or Update to add a 1099-R.
• Enter returned contribution in Box 1 and Box 2a,  and put a Code 8 in Box 7

This will add the income to your return.

If you end up getting a 2017 tax form in 2018, the code on it would be "P". That code is essentially the same as receiving a Code "8" on a 2016 tax form. They both mean "taxable in 2016".