401k over-contribute $681. I follow T_Tax instruct, withdrew xcess funds & listed $681 in1099-R. Still can't e-file because 1040A line 12b > 18,500 generates errors?

[glnow2005]

It won't let me e-file with 1040A line 12b being over $18,500.  Now that excess contribution ($681) amount has been distributed by plan admin. and listed as a 1099-R, is it OK to reduce the 401k contribution line on my W-2 by $681?

My employer said they are not sending out a corrected W-2.  

Or do I need to keep the W-2 as is and will be forced to file by mail

[macuser_22]

Was this a 2017 contribution returned in 2018?
Is this a 2018 1099-R?
What code is in box 7 on the 1099-R?
What is in box 1 and 2a?

[glnow2005]

No this was a 2018 contribution, returned prior to 4/15/ 2019.   I requested the excess be distributed, and Fidelity sent check out in March of 2019.   I didn't get an actual 1099-R from fidelity yet, they say it will come out in January 2020 (the funds lost value, so there won't a profit made on contribution).  

Turbo tax said list a 1099-R anyways, list the over contribution amount in box 1 and 2a.
For box 7, "this a 2018 contribution returned in 2019" seems most accurate.  

[macuser_22]

You said "1040A line 12b " - that is a 2017 tax return.  There is no 2018 1040EZ and line 12bo on the 2018 1040 is Schedule 3 entries.

For a 2018 excess deferral returned in 2018 enter it this way:

You do not need to wait for a 1099-R next year that will probably require you to amend your 2018 tax return to report the
excess on line 1 of your tax return - it can be entered this way and then ignore the 2019 1099-R with a code P in box 7 when it comes.

There are two methods to do this:
1) Enter a 1099-R with the returned contribution amount (not including earnings) in box 1 & 2a, and a code "P" in box 7.   When asked what year 1099-R say 2019.

or 2)
Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)

Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.

This will add the returned excess to your 2018 wages on line 1 exactly the same way that the 1099-R would.  The only information that is sent to the IRS is the line 1 amount.

[Note: If there were any earning that were returned in 2019 then the earnings will be reported on a separate 2019 1099-R with a code 8 that goes on your 2019 tax return - do  not enter the earnings here.]

Both methods will add the returned excess to your 2018 wages on line 1 exactly the same way that the 1099-R would.  The only information that is sent to the IRS is the line 1 amount.

For information see IRS Pub 525 page 10
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p525.pdf">https://www.irs.gov/pub/irs-pdf/p525.pdf</a>

[glnow2005]

Thank you for the detailed response.  Once the excess is returned and indicated as 2018 wages using any method that you mentioned.  Am I safe to reduce the amount of 401K contribution from what is listed by my W-2?  

That seems to be the main problem turbo-tax error check is having, it keeps pointing out that the 401K is over $18,500 at error check.  

[macuser_22]

No.   Enter the W-2 as is.   The W-2 reports what happen in the past ans you cannot change the past.  The W-2 take the excess out of your income and either of the above methods puts it back.

[glnow2005]

Ok, then how do I get around the error check bug that is stopping me when I try to efile?  

[macuser_22]

If you entered a 1099-R then delete it.
What does error check say?

[glnow2005]

Thank you.  The error goes as follows (after running federal smart check or just before efiling)

"We found 2 areas on your federal return where we'll need to review your entries. We'll handle them one at a time".   (Hit "check entries")

(Forms W-2 and W-2G Summary: Elective deferrals - TP $19181 is more than the allowed  $18500" for a 401K plan. Please check your entries on your W2 for 401K plans".

Below this text is shown a entries from a form titled:                                                                      "Form 1040                 Forms W-2 & W-2G Summary                2018"

The entry in Line 12 b "Elective deferrals to qualified plan" (19,181)  is highlighted blue with red text.   Only "continue" is available.  Hitting continue brings up a repeat of the screen described above.

After that I can either "Run Smart Check Again" or "Done".  If I'm at a review stage, "Done" moves onto the next step (i.e. moves from federal to state". However, at the efiling stage, hitting "Done" takes me back to "We found 2 areas..."

[macuser_22]

I would delete the W-2 and re-enter.  I made a test return and entered a W-2 with a code D and $30,000 in box  12 and smart check did not complain.

If not I suggest calling customer support who can review your tax return.

Here is a TurboTax FAQ for contacting customer support.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number">https://ttlc.intuit.com...>

[glnow2005]

Was it $30,00 in Box 12D, elective deferrals to 401K specifically?  

[glnow2005]

Also, since it's just a summary form (that says keep with my record), can I just override the value in the summary form and not change any of the W-2 info?  Will turbo tax still let me efile?

[2manydogs]

I am having the same problem. I have done everything step by step. I also deleted w-2 and reentered it. No luck.

[macuser_22]

That should just alert you to the fact that the deferral exceeds the limit which you already know.   You should be able to just ignore it.