How to report excess deferral (401k over contribution) in 2018 without a 1099R?

[tomf60]

You will need to add the excess as indicated above to wages . It does not let you efile. You need to mail your returns.. It is a bug that TT can not figure out.  This is somewhat of a common thing that happens. Pretty disappointed. Will try other software next time.

[ammpet]

so this won't allow me to file federal, and i will have to paper file my state return as well, this drives me nuts. bye bye next year

[dfnak8mur8]

as of 4/8 730pm, still no fix.  have been on hold trying to reach Turbo Tax for hours

[tsoli1]

I have the same issue and its baffling that TurboTax cannot fix this issue. This is one of the common use case, and should have been fixed from day 1. I just filed with H&R Block and they handled the excess contribution (adding the excess amount as income) without me having do to anything.

This is disappointing on TurboTax part.

[eugene-b]

Wow, I'm so happy I've found this thread. I have over-contributed to 401k in 2018, withdrawn excess deferral and was hoping to finalize my returns today. If Turbotax doesn't allow me to make a e-file in this situation, it's a huge problem. Will have to look for other options. It's a pity through - I've been Turbotax customer for 5 years...

[panos_spiros]

Still no fix!!!! Turbotax will refuse to refund me

[dflorea]

I will also request a refund and migrate to h&r

[panos_spiros]

Confirming they finally fixed it. I was able to e-file and has withdrawn my refund request.

[macuser_22]

It does not matter.  Both do exactly the same thing - add the excess contribution to your taxable wages.  Two ways to do the same thing. 

=======

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 7 of your tax return - it can be entered this way and then ignore the 2018 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
https://www.irs.gov/pub/irs-pdf/p525.pdf

[mlaksmana]

Following the option#2 where you report the over contribution now without 1099-R, which amount do I enter -the gross over contributed $ or the net over contributed $ (after loss and federal tax)? Thanks in advance.

[mlaksmana]

And can i report the loss on my over contibution?

[macuser_22]

@mlaksmana - Refer to the 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>

'Report a loss on a corrective distribution of an excess deferral in the year the excess amount (reduced by the loss) is distributed to you. In-clude the loss as a negative amount on Sched-ule 1 (Form 1040), line 21, and identify it as “Loss on Excess Deferral Distribution.”'

[panos_spiros]

Turbotax keeps giving me an error: Elective referrals TP $$$$$ is more than the allowed 18500 for 401K plan. Please check your entries

[macuser_22]

@panos_spiros - see answer below.

[regular_user]

Understood that option #2 should be easier to report, but both prevent from efiling Federal Tax  Return. Nevertheless, can we still efile for State Tax reporting (Ex: NY)? It is not clear. Please advise.