I accidentally overcontributed to my Roth 403(b), but the plan administrator helped remove the excess contribution before the April 15 deadline. However, my W-2 still shows the full (overcontributed) amount. I didn’t receive any separate tax form or report confirming the removal of the excess contribution. Where in TurboTax should I report this, to make sure I’m not taxed again on the excess? Since this is a Roth 403(b), the contributions were made with after-tax dollars, and I want to avoid any double taxation.
You do not need to enter anything on your 2024 tax return since Roth 403(b) contributions are after-tax contribution. Therefore, it is not necessary to add anything to your wages. You will get a 2025 Form 1099-R with code 8 in 2026 to report any gains on the excess and this will be entered next year on your 2025 return. You can ignore the 2025 Form 1099-R with code P and B.
Please see Pub 525 for additional information.
Thank you so much, Dana! However, the W-2 reports the amount we contributed before we withdrew the excess. What should we do in this case?