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toomanyusernames
Returning Member

Individual 401k excess in 2019, refund in 2020

 

I am salaried employee with a company but I also do some self-employed work and I have an individual 401k (started earlier when I was an independent contractor).

 

In Dec 2019 I made a $3000 contribution to my solo 401k as a salary reduction.  This month I discovered part of it was excess, so I decided to do a complete refund.

 

How do I enter this in TurboTax?

 

Do I enter the $3k contribution in the Self-Employed Retirement Plans section as usual, then enter $3k as Other Earned Income similar to what this post says.

 

If this is the correct way to do it, does anyone know if I can e-file my return, or will I have to file paper?

5 Replies
MaryK1101
Expert Alumni

Individual 401k excess in 2019, refund in 2020

@toomanyusernames  In your specific case (because it was the Solo401k) you can just remove the entry in the Self-Employment Retire Plans sections.  Please note- if this terminates the Solo401k there are separate forms you need to file with the IRS not related to this individual income tax return.

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toomanyusernames
Returning Member

Individual 401k excess in 2019, refund in 2020

Thanks.  I received the refund already but it was labeled as "Distribution - refund of excess".  Are you saying I don't need to enter this as a 401k distribution?

RobertG
Expert Alumni

Individual 401k excess in 2019, refund in 2020

If you received a 1099-R for the distribution you need to report it on your return. Make sure the distribution code on the 1099-R is correct for your distribution.

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toomanyusernames
Returning Member

Individual 401k excess in 2019, refund in 2020

I made the contribution in Dec 2019, I got the refund this month Jan 2020.  I won't get the 1099R until next year, right?

DanaB27
Expert Alumni

Individual 401k excess in 2019, refund in 2020

Yes, you are correct you won't receive the 1099R until next year.

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