It won't let me e-file with 1040A line 12b being over $18,500. Now that excess contribution ($681) amount has been distributed by plan admin. and listed as a 1099-R, is it OK to reduce the 401k contribution line on my W-2 by $681?
My employer said they are not sending out a corrected W-2.
Or do I need to keep the W-2 as is and will be forced to file by mail?
At the bottom of this post, it says “Solution: Unfortunately at this time, customer with an excess contribution will need to print and mail, despite following the Steps to Take to Remove an Excess Salary Deferral as listed above.” I was surprised to see this because I was able to efile last year with the 401k over the max.
* Report the excess deferral on your 2018 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 2019 Form 1099-R.
I filled it in how my 1099-R was with a “P” and then TurboTax asked what calendar year, which mine was 2019. I knew it worked because it decreased my refund (since my taxable income increased).
The earnings on my distribution has a separate 1099-R and that one had a code 8, for calendar year 2019. This one did not change my taxable income and I’ll have to input it next year.
Note: I overcontributed to 401k for 2018, but the amount wasn’t taken out until this February (due date is by April 15th I believe). The 1099-R forms say 2019 since that was when it was distributed. The over contribution is taxable in 2018 but the earnings not until 2019.
I saw an update on this issue.
“TurboTax is aware of the e-filing issue that you are having and is currently working on a solution. 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.”
This issue is scheduled to be fixed in an update that is currently planned to be released on 4/5/2019.
Please click here to receive email notifications when any updates related to this issue become available.
Unfortunately, customers who had excess 401(k) contributions withheld will need to paper-file, even after taking the corrective steps."
So basically your promise of a fix for e-filing was BS, thanks Turbo Tax! How about refunding the cost of the e-filing from my original purchase?