Overcontribution 401k in 2023, 1099-R reported in 2024, amend 2023 tax return?

[GM-tax]

Hi,

In 2023, I over-contributed to my Fidelity 401k. Then, in February 2024, I received two payments from Fidelity for the over-contributed amount plus the earnings on that amount. In early 2025, I received two 1099-R (2024) forms from Fidelity—one with distribution code P and the other with distribution code 8. I reported both 1099-R forms on my 2024 tax return, and TurboTax suggested, "looks like you may need to amend your 2023 return." After doing some research, I want to confirm whether I really need to amend my 2023 taxes or not.

Thank you.

[DanaB27 · Accepted solution]

If you didn't report the excess deferral on your 2023 return with the steps below then you will have to amend your return. You can check Form 1040 line 1h if the excess deferral was reported on your 2023 return. The earnings reported on Form 1099-R with code 8 will be reported on your 2024 tax return.

1. Login to your TurboTax Account 
2. Click "Wages & Income" (under Federal) on the left side of your screen
3. Scroll  down to "Less Common Income" and click "Show More"
4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
5. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
6. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
7. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
8. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
9. On the "Any Other Earned Income" screen enter "2023 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".

Please see How do I amend my federal tax return for a prior year?

[GM-tax]

Thanks for replying!

I checked, and I didn’t report the excess deferral in my 2023 tax return (Form 1040, box 1h is empty), nor did I follow those steps at the time.

I’m now working on amending my 2023 return, following the same steps you mentioned:
TurboTax > Receive other wages (such as excess salary deferrals) > Yes > then on the page to add the employee wages amount (in my case, $3,902), there’s a note stating:

"Only report income that is less than $2,600 per employer. If the amount exceeds this limit, the employer must issue a corrected W-2."

I’m unsure if this applies to my case. If it does, it seems like I’d need to request a corrected W-2. Could you clarify?

In the meantime, I went through all steps and before filing my amendment, and I can see in Form 1040-X (box 1b the $3,902 amount), as well as in the updated Form 1040 (box 1b, no 1h), and the taxes I need to pay for this amount.

Thanks

[GM-tax]

I realized the issue on my end. I was reporting the amount in a different category, instead of "Other Earned Income" and it is now showing up in box 1h. Thanks