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Level 1

Should i include my refund in this year Income from retirement fund due to excess contibution last year , I received the refund this year

i just received my refund check  from my retirement fund due to  my last year excess maximum contribution . I contributed more than my maximum allowable which is $24,500.00 (include catch up ) for year 2018 , 

I spoke with customer service of TIAA (my retirement fund service provider )  . They informed me they will issued 1099R January next year for year 2019 not 2018 . should i include the refund in 2018 tax return or 2019 ? if i include the said refund  in year 2019  tax return , will i occurred penalty due to my excess   maximum contribution of 401K  on 2018 

I filed an extension of my tax return this year , I also paid an estimated tax for federal and state . Because i include the refund as income in my 2018 tax return. but if i will not include the refund in this year tax return , I will  get an refund for my said tax return  , how can i get back my advanced payment for the estimated tax 

I bought turbo tax premier  and i also enrolled on audit defense . as i understand I can ask tax question due to above purchase 

1 Reply
Level 8

Should i include my refund in this year Income from retirement fund due to excess contibution last year , I received the refund this year

You need to include the excess contribution on your 2018 Tax Return.  You will receive a Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested below.  However, the earnings (if any) will be reported on a separate 2019 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2019 tax return.

Note: You do not have the option to report the income on your 2019 Tax Return, it must be included on your 2018 Tax Return.

You should include the payments made with your extensions on your Tax Return by following these steps:

  1. Search for the term estimated tax payments
  2. Select the Jump to link.
  3. Choose Start next to the type of estimated tax payment you'd like to enter.

To include the excess contribution to your 401(K) on line 1 of your 2018 Form 1040 by following these steps: 

  • Open your return
  • Click on the "Federal Taxes" Tab
  • Click on the "Wages & Income" Tab
  • Click on "I'll choose what I work on"
  • Scroll down to "Less Common Income" and click "Show More"
  • Select "Miscellaneous Income" and click "Start or Update"
  • Select "Other income not already reported on a Form W-2 or Form 1099" and click on "Start"
  • Answer the Question "Did you receive any other wages?  Yes"
  • Click "Continue" through the questions until you get to "Any Other Earned Income"
  • Answer "Yes" to "Did you earn any other wages?"
  • Indicate "Other" as "Source" of Other Earned Income and click "Continue"
  • For the description enter "2018 Excess 401K Deferrals" and click on "Done"