Refund of 401k excess deferral was added Misc income.Elective deferrals to qualified plans is still over $18500 and keep giving an error due to that.How can I fix this?
I have made over contribution to 401k plan with 2 employees. I was able to get a refund check of excess deferral from previous employer plan. This excess deferral amount has been added in Miscellaneous Income as guided in TurboTax. My Federal Tax Due has increased after adding this deferral amount as expected. However, there's an error with Elective deferrals. It's still over $18500.
Here are my questions.
1. Should this be $18500 instead of $18500+excess deferral?
2. Excess Deferral is $3508.24 but return check was $3312.25 with Allocable loss of $195.99. Can I still claim that I got full return of excess deferral?
3. Can I report $195.99 of allocable loss as "Capital Loss"?