Over contribution in 403b

Forum|Forum|2 years ago
April 3, 2024
1 reply
5 views

Hi,
I accidentally over contributed in my 403b (pre-tax) last year. (Two different employers). I withdrew the excess amount, and the earnings last month (Before April15). But the finance company didn't provide the 1099-R, since they issued the check this year. What is the process to fix this issue?

TurboTax Deluxe Online

ThomasM125

Level 15

You need to enter a substitute Form 1099-R in TurboTax to to report the distribution in 2023 since you won't get the Form 1099-R reporting the distribution until 2024.

Go to the personal income section of TurboTax
Find the Retirement Plans and Social Security menu option
Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
Choose Add Another 1099-R
Choose I'll type it in myself
On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R
Enter the distribution amount in box 1 of the substitute 1099-R
Enter the distribution amount in box 2(a)
Enter code "P" in box 7 for return of contribution taxable in 2022 (the actual one next year will say 2023)
When asked about the year on the form 1099-R, say it is for the year following the year you are working on

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agm1420Author

Level 2

Thank you Mr Thomas.

Just one more question, should I deduct the excess contribution amount from the box 12 of my W2?

DanaB27

Level 15

No, you do not make changes to your W-2.

Please note for the Tax Year 2024 tax filing due April 15, 2025:

You will receive two 2024 Forms 1099-R will be issued reporting the excess.

Form 1099-R with Code P in box 7 can be ignored if you reported the excess as described above in 2023.
However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2024.

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