How do I submit a 1099-R for 2018 401k excess contribution? Should I select code 8 instead of code P in box 7? If so, turbotax instructions are incorrect (step 4).

[macuser_22]

Reporting the excess has nothing to do with e-fileing.   Two separate things.  You need to report the excess on the 2018 tax return whether you can e-file or mail file.     Reporting the excess using the "code P" method or using the "Miscellionious Income " both do the same thing.    Reporting it now, means that it will not be necessary to go back and amend 2018 next year after the real 1099-R arrives.

(You do not *have* to report the excess at all now if you prefer to wait until 2020 for the actual 1099-R and the amend 2018 to report it.   This method simply saves you the trouble of amending).

[1985]

Thanks for replying macuse_22.

I thought the 4/5/2019 patch is to fix the excess contribution error after entering 1099-R. I used the "code P" method and intent to file it in the 2018 tax filing. But I still receive the elective deferrals error in the federal taxes Smart Check. Here is my example,

1. Over-contributed $200 in 2018 401(k)
2. Requested and received the 1099-R form for the $200 over contribution
3. Entered the 1099-R form info in "Retirement Plans and Social Security" section "IRA, 401 (k), Pension Plan Withdrawals (1099-R)"
4. I still get the error about elective deferrals to qualified plans in 1040 form - 12b in the federal taxes Smart Check.

I was under the impression that there is no Smart Check error since I entered the $200 as an additional income through 1099-R.

[macuser_22]

The 4/5 update did not fix the e-file issue.   The smart check just looks at the W-2 box 12 to see if it is too much.  

I am not sure just what the 4/5 update did.  I suspect they attempted to fix it since the error smart check no longer "loops" and I can get all the way to "transmit now", but "transmit" does it's own quick error check and fails.  That might have been an oversight and they only fixed half the problem.

[-southsea]

I believe that the update simply added more "helpful" information on how to handle excess contributions. This is from the email they sent out on the 5th to announce the "fix":
> While the interview has been significantly improved, customers seeing this error will need to paper-file.

It looks to me like they added an additional page or two. But otherwise nothing much changed.

I would love to know how to get out of the infinite loop of errors in the smart check. I am still stuck in it.

Also, I know that there are some situations in which the IRS requires a paper filing (eg identity theft). Is that why we need to do the "paper-file" thing here, or is it simply a failing of TT?

[jennifer-george]

This is really confusing. Can someone just tell me if I am supposed to enter a 1099-R as if I received one, or am I supposed to enter it in Miscellaneous Income??

I don't need the details- I don't care if I have to print to file...  I just need to understand clearly which location.

[macuser_22]

Both methods do exactally the same thing and either can be used.   They each  simply place the returned excess contribution amount on the 1040 form line 1 wages.   Use whichever method seems easier for you  (many people get confused with the 2019 1099-R code P since the interview says code P is for 2017, but the year advances by 1 when you say it is a 2019 1099-R).

[tonisia-johnson]

I am having the same problem. TurboTax will not reconcile my returned Roth 401K excess contribution. The tax deadline is in 4 days! When will this bug be fixed?

[macuser_22]

Supposed to be 4/12/19 before midnight.
 <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4698409-excess-401-k-contribution-preventing-e-file">https://ttlc....>

[angelabarry12817]

turbo tax: you did NOT fix this error and it will NOT let me efile.  What a joke.  I am SERIOUSLY pissed.

[macuser_22]

@angelabarry12817 - The e-file problem was indeed fixed with the 4/12 update.

What problem are you having?  
Are you using the CD/download version of the onlne web based version?

[angelabarry12817]

I'm using the download version on a Mac, I ran all updates, I've done the excess contribution two ways (1099 with as much info as I can and then the other way recommended of other income) and Neither way will let me file, it just brings me back ad nauseam to the fix error field saying my w2 has too much deferral.

[macuser_22]

In the top menu bar -> TurboTax -> About TurboTax -> More Info.
What is the Build Date at the bottom?  

If not April 11, 2019 then it is not current.

[angelabarry12817]

you are a wonder. it did install but didn't complete with a relaunch! so it looked updated but wasn't! thank you thank you thank you! will try now.

[douglasjia]

Thank you so much for your instructions! It really saved my life when I am filing my 2019 tax return in 2020. I have some excess salary deferral for my 2019 tax return. I requested to withdraw the excess salary deferral as showed in the turbotax software before 4/15/2020.

I am wondering:

1. Is the excess amount showed by Turbotax accurate? Is it calculated based on the W2 forms I provided?

2. Will I still receive 2 1099-R forms in year 2021 for my year 2020 tax return, one for the excess salary deferral and one for earnings on this excess salary deferral? Or just one for the earnings? Which form should I file together with my 2020 tax return? I am concerned that I may be mistakenly taxed on this excess deferral twice.

Thank you!

[fred1986]

Question - my client contributed in excess to his 401k in 2019. Turbotax caught the excess and i picked it up manually as taxable income on the 2019 tax return. The 401k administrator issued a 2020 1099-R with the distribution amount in box 1 and box 2a and listed code 8 as the distribution code.

Since i already picked up this amount as taxable income on the 2019 tax return, do I also pick it up again on the 2020 tax return? Do I ignore the 1099-R (put a statement in the tax return stating it was picked up in 2019)?