If you over-contributed to your 401(k), you have to report the excess contributions as wages on your 2018 tax return.
Page 10 of IRS Pub
525 under Excess deferrals (the IRS term for 401(k) contribution is deferral)
tells us to include the excess deferrals as income on line 1 of Form 1040 if
the money was returned after the end of the tax year but by April 15th of the
following tax year. You need to report only the excess contribution, not
any money generated by the investment of the excess contribution. What
you earned will be covered by a 1099-R for the following tax year and will be
entered then as a normal 1099-R.
Below is how to do
this in TurboTax:
- Click on Federal in the left-hand column, then on Wages &
Income
- Under All Income, scroll down to Less Common
Income
- Select Miscellaneous Income
and click Start
- Select Other income
not already reported on a Form W-2 or Form 1099 and click on Start
- Answer the question "Did
you receive any other wages? Yes
- Click through the questions
till you get to Any Other Earned Income
- Answer Yes to Did you earn
any other wages?
- Indicate Other as Source of
Other Earned Income
and click Continue
- For the description enter
"2018 Excess 401K Deferrals" and click on Done
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