I did an over contribution and got a Excess Distribution Check (lets say $100) in March 2018.
Fidelity said there were $0 earnings on my $100 excess deferral. They also said I will receive a 1099-R reflecting these distributions in Jan-2020...."The excess deferral of $100 is taxable in 2018 and any earnings (in my case is $0) is taxable in 2019."
Do I add the $100 as Misc Income as I am now Prepping my taxes in April- 2018?
Also what do I do with the letter (1099-R) that Fidelity said I will receive in 2020. I don't want to get taxed on it again.
You'll need to sign in or create an account to connect with an expert.
Yes, you add the $100 excess contribution to your 2018 Tax Return. By doing this, you can ignore the Form 1099-R you receive next year. Since there were no earnings, you will not need to report anything regarding the 2018 excess contribution on your 2019 Tax Return.
To include your overcontribution on your 2018 Tax Return, follow these steps:
Unfortunately, if you have an excess 401(K) Contribution, you won't be able to E-file your 2018 return. There is currently an e-filing issue within TurboTax related to excess contributions so you will need to mail in your return. You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.
Yes, you add the $100 excess contribution to your 2018 Tax Return. By doing this, you can ignore the Form 1099-R you receive next year. Since there were no earnings, you will not need to report anything regarding the 2018 excess contribution on your 2019 Tax Return.
To include your overcontribution on your 2018 Tax Return, follow these steps:
Unfortunately, if you have an excess 401(K) Contribution, you won't be able to E-file your 2018 return. There is currently an e-filing issue within TurboTax related to excess contributions so you will need to mail in your return. You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.
@Rachel_W I was in a very similar situation - even almost down to the amount. I had followed the below instructions on getting the withdrawal and reporting it on my 2018 Tax return.
I just received the 1099-R. Do I just answer "no" to "Did you receive any 1099R forms?"
Still have questions?
Make a postDid 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.