I made excess 2018 Roth 401K contribution. I requested a return of excess from my employer and received a check with a 1099R. Do I need a corrected W2 to file in 2019?

[bmirwin89]

1. I made $3600 excess Roth 401K contribution for 2018 through my employers' plan.

2. I requested my employer  make a request to withdraw excess contributions from my retirement account.

3. Fidelity sent me the check and a 1099R in March 2019.

4. My W2 includes the excess contribution.

Do I need a corrected W2 in order to file my taxes?

[macuser_22]

No.   The 1099-R should take care of that.

What code is in box 7?

[bmirwin89]

Sorry, I misspoke.  I got a distribution statement that says they will be sending a 1099R in 2020.
What do I need to do to file this year?

[trek5200]

I have  the same thing. How did you enter your w2 box 12. If you enter what is on your w2 it will be more than 18500 and you can't file.
Should I get a corrected w2 or just enter the correct value in box 12 D

[macuser_22]

You do not need to wait for a 1099-R next year that will probably require you to amend your 2018 tax return to report the excess on line 1 of your tax return - it can be entered this way and then ignore the 2019 1099-R with a code P in box 7 when it comes.

There are two methods to do this:
1) Enter a 1099-R with the returned contribution amount (not including earnings) in box 1 & 2a, and a code "P" in box 7. When asked what year 1099-R say 2019.

or 2)
Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)

Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.

This will add the returned excess to your 2018 wages on line 1 exactly the same way that the 1099-R would. The only information that is sent to the IRS is the line 1 amount.

[Note: If there were any earning that were returned in 2019 then the earnings will be reported on a separate 2019 1099-R with a code 8 that goes on your 2019 tax return - do not enter the earnings here.]

Both methods will add the returned excess to your 2018 wages on line 1 exactly the same way that the 1099-R would. The only information that is sent to the IRS is the line 1 amount.

For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf

[BobinCT]

It's a Roth.  Box 1 wages were not reduced for it.  Same advice?

[macuser_22]

Thank's for pointing that out - I misread the question. I believe a return of a 401(k) Roth excess would have the contribution in box 1 and zero on box 2a so there would be no taxable amount  to report.

[bmirwin89]

So I should file with the over-contribution amount included in the current W2 because it's already been taxed?

[macuser_22]

Yes you file the W-2 as is since the W-2 is reporting what already happened.   The 1099-R says that it was returned.

[bmirwin89]

Ok.  And the 1099-R will be reported when I file my 2019 taxes next year, correct?

[macuser_22]

No,  Not unless there were earnings, in which case the earning will be an a separate 2019 1090-R with a code 8 that does go on the 2019 tax return as stated in the answer.

[trek5200]

you can't file (the software won't let) if the total for 12D is more than the limit.

[bmirwin89]

I still think I'm missing something.  TurboTax is still flagging that I have an unresolved over-contribution for 2018.  It sounds like it wants me to enter in a 1099-R to show that I have completed a distribution of excess, but I won't be receiving a 1099-R from Fidelity until 2020.  How do I fill out the 2018 1099-R form for a 1099-R I don't have?  Everywhere I look I'm finding conflicting information.

[macuser_22]

See my answer above.   However, that will not resolve the TurboTax error that is based on the W-2 box 12 amount and seems to have been introduced with an update a few days ago.

TurboTax support has told one user that after entering the "dummy" 1099-R to reduce the box 12 code D amount by the excess amount, but I have reservations about submitting a false W-2 and a W-2 where the box 12 amount cannot reconcile the difference between the W-2 box 1 amount and box 3 amount.  The IRS computers might "red-flag" the return if the W-2 amounts do not add up.

So far TurboTax has not recognized this as a new bug.

You can contact customer support this way.
Here is a TurboTax FAQ for contacting customer support.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number">https://ttlc.intuit.com...>

[macuser_22]

TurboTax has released a FAQ on this issue - the answer is to print and mail the return.

Excess 401(k) Contribution Preventing e-File

https://ttlc.intuit.com/replies/7327357