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EY1990
New Member

My W2 Box 12e deferral is more than 18.5k (it is 20k) and total is 61k. How do I rectify this? Do I have to go to my retirement person at my institution to assist me?

 
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Rachel_W
Level 4

My W2 Box 12e deferral is more than 18.5k (it is 20k) and total is 61k. How do I rectify this? Do I have to go to my retirement person at my institution to assist me?

First, if you haven't done so already, you should contact the Financial Institution holding your 401(K) to request a distribution of the excess contributions.  This should be done before the due date of your return, 4/15/2019 to avoid double taxation on the amount.  Check out IRS Pub 525 for more details:  https://www.irs.gov/pub/irs-pdf/p525.pdf.

Next, you should report the excess contributions on Line 1 of your 2018 Tax Return by following these steps in TurboTax Online:

  • Login to your TurboTax Online Account
  • Click "Take Me to My Return"
  • Click "Federal" from the left side of your screen
  • Scroll down to "Less Common Income" and click "Show More"
  • Select "Miscellaneous Income" and click Start or Update
  • 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 "Continue" through the questions until 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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