Reporting returned Roth 401k Excess contribution

[NC byNY]

Hi, 

I filed a return of excess Roth 401k contributions for 2019 (had 2 employers) from the 40K manager and they sent me a check for the excess Roth distribution along with the earnings on the excess.

I know I will get a 1099-R for the earnings and will file that with my 2020 taxes. 

On my 2019 taxes my total W-2 Roth Contribution shows that I exceeded the 2019 limits. My question is how I report that I properly had the excess ROTH (After Tax) funds returned prior to the April 15th deadline?

[macuser_22]

Incorrect post removed.

For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf

[dmertz]

No, @macuser_22 .  The excess is not includible as miscellaneous income because Roth contributions are not excluded from box 1 of the W-2 in the first place.  At most, all that is needed with the 2019 tax return is an explanation statement indicating that the excess was distributed before April 15, 2020.

[NC byNY]

You are correct in assuming I received the distribution in 2020 for 2019 excess contribution. Plan would not do the refund until I provided both W2's showing the excess. 

Quick clarification question - The excess amount however was returned from Roth funds (after tax) so if I add that amount to my 2019 Line 1 would I not be paying tax again on that amount because line one already reflects that amount?  Thanks in advance for your insightful discussion.

[macuser_22]

@dmertz  Good point!  I deleted my post @NC byNY  disregard it.  The earnings will still be taxable in 2020.

[NC byNY]

Thank you for the insightful discussion!