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ttcustomers
Level 2

I over contributed 401K by $150 in 2017 due to job change. On Turbo Tax, do I add $150 to Boxes 1, 3 and 5, and then subject $150 from Box 12? What do I do with 1099 R?

 
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Rachel_W
Level 4

I over contributed 401K by $150 in 2017 due to job change. On Turbo Tax, do I add $150 to Boxes 1, 3 and 5, and then subject $150 from Box 12? What do I do with 1099 R?

Your excess 401(K) Contribution should be added to Line 7, Wages, on your Form 1040.  You should input your Form W2 exactly as it appears, and then follow one of the two sets of steps outlined below to report your excess contribution, depending on if the excess was distributed in 2017 or 2018.

If the excess was distributed to you in 2017, you should have a Form 1099-R reporting the transaction.  Follow these steps to input your Form 1099-R:

  • Click on the "Federal Taxes" Tab
  • Click on the "Wages & Income" Tab
  • Click on "I'll Choose What I Work On"
  • Scroll down to "Retirement Plans and Social Security"
  • Click Start/Update next to "IRA, 401(k) Pension Plan Withdrawals 1099-R"
  • Input your Form 1099-R line by line

If the excess was not distributed until 2018, you should report the excess contributions to your 401(K) on line 7 of your 2017 Tax Return without 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

Please comment below if this does not answer your question so I can assist you further.


View solution in original post

3 Replies
Rachel_W
Level 4

I over contributed 401K by $150 in 2017 due to job change. On Turbo Tax, do I add $150 to Boxes 1, 3 and 5, and then subject $150 from Box 12? What do I do with 1099 R?

Your excess 401(K) Contribution should be added to Line 7, Wages, on your Form 1040.  You should input your Form W2 exactly as it appears, and then follow one of the two sets of steps outlined below to report your excess contribution, depending on if the excess was distributed in 2017 or 2018.

If the excess was distributed to you in 2017, you should have a Form 1099-R reporting the transaction.  Follow these steps to input your Form 1099-R:

  • Click on the "Federal Taxes" Tab
  • Click on the "Wages & Income" Tab
  • Click on "I'll Choose What I Work On"
  • Scroll down to "Retirement Plans and Social Security"
  • Click Start/Update next to "IRA, 401(k) Pension Plan Withdrawals 1099-R"
  • Input your Form 1099-R line by line

If the excess was not distributed until 2018, you should report the excess contributions to your 401(K) on line 7 of your 2017 Tax Return without 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

Please comment below if this does not answer your question so I can assist you further.


View solution in original post

np1nd
New Member

I over contributed 401K by $150 in 2017 due to job change. On Turbo Tax, do I add $150 to Boxes 1, 3 and 5, and then subject $150 from Box 12? What do I do with 1099 R?

I have the same issue for tax year 2020 where I contributed extra for 401k by a few hundred dollars. I amusing turbotax desktop edition. the advise on TT is 

"Report the excess deferral on your 2020 return in the Income section for Retirement Plans and Social Security whether or not you received a Form 1099-R before you file your return. Enter as much information as you can. Report the excess deferral amount in boxes 1 and 2a, and use code P in box 7. Indicate that this is a 2021 Form 1099-R.

 In 2021, you will probably receive two Forms 1099-R. One reports the excess deferral amount. The other reports the earnings on the excess deferral. Enter both of these forms in your 2021 return, and we'll only add the earnings to your 2021 income."

I have not received to 1099 in 2021 yet. How do I indicate that this is a 2021 Form in the software. Also, I am not sure what the exact address will be on the 1099-R of the payor.

 

MaryM428
Level 10

I over contributed 401K by $150 in 2017 due to job change. On Turbo Tax, do I add $150 to Boxes 1, 3 and 5, and then subject $150 from Box 12? What do I do with 1099 R?

Connect the plan administrator and attempt to get a 1099-R for 2021.  

If that fails, you can create a substitute 1099-R. 
 

If your plan administrator doesn't give you Form 1099-R for 2021 (or the one you receive is wrong and your plan administrator refuses to correct it), do your best to obtain the form or correction before completing a substitute on Form 4852.

You'll be required to:

You will do that by starting the 1099-R and just use the best address that you can find.  When you get to a question about creating a substitute 1099-R select that item:

  • Describe your communications with the plan administrator in your attempt to get the form, and
  • Attest to the IRS that you were unable to obtain it.

We’ll walk you through this. Just make sure you complete the 1099-R form entry as if you actually received the correct form. Enter as much information about the payer as you can, including name, address, and the amounts for 2020. Then complete the information for the substitute form.

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