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Level 1
posted Apr 27, 2020 8:46:57 AM

Is there anything else I need to do after I enter my 1099R with distribution code E? Plan corrected over contribution for me during 2019 year

I received 1099R with distribution code E for 2019 tax year since my plan administrator allow me to over contribute to my 401k account, and plan administrator realize the mistake they made and disturbed the over contribution and earning to me before 12/31/2019, and I received 2019 1099R with distribution code E. I did enter this 1099R in the turbotax, is there anything else I need to do?

0 1 500
1 Replies
Level 15
Apr 27, 2020 8:52:21 AM

No.  Just enter the 1099-R

 

Distributions Under Employee Plans Compliance Resolution System (EPCRS)

The procedure for correcting excess annual additions under section 415 is explained in the latest EPCRS revenue procedure in section 6.06 of Rev. Proc. 2019-19, 2019-19 I.R.B. 1086, available at IRS.gov/irb/2019-19_IRB#RP-2019-19.

Distributions to correct a section 415 failure are not eligible rollover distributions although they are subject to federal income tax withholding under section 3405. They are not subject to social security, Medicare, or Federal Unemployment Tax Act (FUTA) taxes. In addition, such distributions are not subject to the 10% early distribution tax under section 72(t).