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bahersamir2000
New Member

My wife contributed too much in 401 because she has 2 jobs...what do we do now ?

 
1 Reply
Rachel_W
Level 4

My wife contributed too much in 401 because she has 2 jobs...what do we do now ?

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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