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I received a 1099R (for withdrawal of same year 2018 excess 401k contribution) . Do I need to enter 1099R if I use the revised w2 with the corrected 401k contribution?
It seems that my taxes would be unjustifiably higher if I show the corrected and revised value of my 401k contribution for the year as well as an1099R withdrawal (though coded as 8 under box 7). This withdrwal took place in the same year of 2018 contribution.
So would it not be correct to either
option1 use the revised w2 with corrected and reduced 401k contribution and not enter 1099R info
or
option2: use the original w2 with excess 401k contribution along with the 1099R entries
If so, which option is preferred?
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I received a 1099R (for withdrawal of same year 2018 excess 401k contribution) . Do I need to enter 1099R if I use the revised w2 with the corrected 401k contribution?
Option 1 is the preferred option. The corrected W-2 has the correct compensation amounts in Box 1 which is where it should be. You can ignore the 1099-R as you are paying the tax in 2018 via the increased Box 1 amount. Keep records in case you have to explain the unreported 1099-R. However, if any of the amounts on the 1099-R represent earnings on the excess contribution, the amount of those earnings should be included in income also.
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