Is it ok to submit the return if TurboTax complains that there is excess 401k contribution? I have received the excess back and entered it as additional income.

I overcontributed in 2018 to my 401k and received the excess back before April 15, 2019. I entered the excess as additional income, but in the final review TurboTax still warns that there is excess 401k contribution reported in the form. Is this OK to submit, or do I have to alter the W2s? Furthermore, I entered the excess as additional income, but I've also seen suggestions to create a "fake" 2019 1099-R. Should I do one or the other, or both?

478

Expert Alumni

Jun 4, 2019 8:36:04 PM

You should not alter your W2s or create a fake 2019 1099-R.

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.

You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.

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Is it ok to submit the return if TurboTax complains that there is excess 401k contribution? I have received the excess back and entered it as additional income.