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posted Mar 7, 2025 10:35:21 AM

I opened and contributed solo 401k in Dec 2024. But my business was at loss. I am requesting Excess Contribution Removal from my brokerage.

How to report in TurboTax, if needed, the excess contribution in Dec 2024 and the Excess Contribution Removal (Distribution?) that would probably be completed March 2025? Do I need to submit any forms to IRS? I am a sole-proprietor 1099. Thanks in advance!

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1 Replies
Expert Alumni
Mar 17, 2025 4:19:18 PM

If you remove the excess contribution before the due gate of your tax return, you will not have to pay any penalty.  Your trustee will send you a 1099-R for 2025 which will have any income that was earned while the excess was in the account, which you will report on your 2025 tax return.