Had already filed Fed and CA 2018 returns. Received letter on 4/9/19 stating I over-contributed $4,147 to 401K in 2018 --along with a reimbursement check. Letter said I would receive a 1099R by Jan. 2020. Do I have to amend 2018 return or simply report over-contribution on 2019 return?
Yes, you need to Amend your 2018 Tax Return to include the excess contribution to your 401(K) as wages on your Tax Return. You can click here for instructions on Amending your tax return: How to Change a Tax Return You Already Filed.
Once you start the Amendment process, follow these steps to add your excess 401(K) contribution to your wages:
- Click on the "Federal Taxes" Tab
- Click on the "Wages & Income" Tab
- Click on "I'll choose what I work on"
- 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"
You will receive a Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested above. However, the earnings (if any) will be reported on a separate 2019 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2019 tax return.
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