Reporting returned Roth 401k Excess contribution

Forum|Forum|6 years ago
March 2, 2020
1 reply
7 views

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?

Not A Product Question

macuser_22

Alumni - Champ

Incorrect post removed.

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

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

dmertz

Level 15

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.

macuser_22

Alumni - Champ

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

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**