457(b) Plan Excess Contribution

[peterlkim11]

I know this has been addressed in prior questions but I am getting mixed answers.

In 2025, I changed jobs and inadvertently made an extra $2,200 contribution into my 457(b) plan. I already corrected the matter by requesting and receiving the $2,200 from the plan before the April 15 deadline.

My question is this: which option do I use to report this untaxed $2,200? 

I did the "Other earned income" option as shown below:

Can anyone confirm if this is right? It's on line "h"/"Other earned income" of the first page of the 1040 form, but it's not on any other schedule.

Thanks in advance for your assistance.

[MarilynG1]

You should get a W-2 from either the Plan Administrator or your employer to report the Excess Contribution to your 457b in TurboTax, depending on whether your plan was governmental or non-governmental.

You can add the excess amount received under the 'earned income not reported on W-2 or 1099' heading.  Enter the description as "2024 Excess 457(b) Deferrals" and input the amount. You may get a W-2 (non-governmental) or 1099-R (governmental) later, reporting any earnings. 

Here's more info on Excess Contributions for 457b Plans.

@peterlkim11 

[peterlkim11]

Thank you but I'm still confused.

My employer will not issue me a corrected W-2 because the excess contribution came directly from the 457(b) plan administrator. I called the plan administrator and they told me that I would get the 1099-R next year for the little earnings I made. 

It asks me to check the code that applies to me but none of them do so what do I do? (see below)

[DaveF1006]

No. None of those codes accurately describe your situation so let me make another suggestion on how to report this. 

1. Open your return and go to Federal > Wages & Income. 
2. Scroll to the very bottom to the Less Common Income group.
3. Click Start (or Revisit) next to Miscellaneous Income, 1099-A, 1099-C.
4. Select Other reportable income (usually the very last option).
5. Other taxable income 
6. Click Continue past the screens until you reach the screen that says other reportable income at the bottom.
7. When it says any other taxable income. Mark yes.
8. Description: Enter EXCESS 457(B) DEFERRAL
9. Amount: Enter 2200
10. Click Done.

This is a much simpler method since it doesn't require the use of codes, but still captures the income in your return.

@peterlkim11