I over contributed to my 401k in 2017, notified the plan admin, and then in January 2018 was issued a refund for over payment + earnings. The over contribution was $515 and earnings were $20, so the total refund was $535.
As I understand it, TurboTax calls this an Excess Salary Deferral. Is this the correct classification?
The TurboTax help has a section called "Examples of Excess Salary Deferrals", where "Example 1" most closely aligns to my situation. TurboTax also has a section "Steps to Take to Remove an Excess Salary Deferral", which is what I understand that I need to do (low confidence). Step #4 in this section directs me to report the excess deferral using a Form 1099-R. Since I did not receive a 1099-R, do I need to mock one up?
If I use Code P in box 7, this indicates "Return of contributions taxable in 2016", but obviously this is taxable in 2017. Is this the correct code?
Any guidance would be greatly appreciated! Thank you,
You'll need to sign in or create an account to connect with an expert.
Yes, over contributing to your 401(k) is considered an "Excess Salary Deferral".
No, you should not create a mock Form 1099-R.
You can report the refund of the excess contributions to your 401K on Line 7 of your 2017 Tax Return without a Form 1099-R by following these steps:
You will receive a 2018 Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested above. However, the earnings will be reported on a separate 2018 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2018 tax return.
Yes, over contributing to your 401(k) is considered an "Excess Salary Deferral".
No, you should not create a mock Form 1099-R.
You can report the refund of the excess contributions to your 401K on Line 7 of your 2017 Tax Return without a Form 1099-R by following these steps:
You will receive a 2018 Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested above. However, the earnings will be reported on a separate 2018 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2018 tax return.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Racheld1
New Member
mrboston481
New Member
Pager1979
Returning Member
rachel_grace66
New Member
Raaaccchhhyyy
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.