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Level 1

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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Level 6

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.


1 Reply
Level 6

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.