To address your overcontribution to your 401(k), you need to report the excess contribution as wages on Line 1 of your 2018 Tax Return by following these steps:
- Login to your TurboTax Online Account
- Click "Take Me to My Return"
- Click "Federal" from the left side of your screen
- Scroll down to "Less Common Income" and click "Show More"
- 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 "Continue" 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 "2018 Excess 401K Deferrals" and click on Done
Note: Currently, there is an e-filing issue within TurboTax related to excess deferrals. An update to fix the issue is expected to be released around 4/5/2019. Be sure to sign up for updates to be alerted as soon as there is a solution. If you do not want to wait for an update, you have the option to paper file your tax returns as this is only an e-filing issue. You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.
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