Elective Deferrals is more than the allowed $18500 for a 401k plan

[TTUserfromCA]

My spouse has moved jobs in 2018. His first job had a 403(b) and his second has a 401(k). Combined, it is going over the limit. I am unable to submit my tax returns because of this. What should I do?

[MarilynG]

Contact your Plan Administrator to have either the Excess Contribution Amount (plus earnings) returned to you, or to have it count towards your 2019 contribution limit.

Adjust your payroll deductions accordingly if you defer to 2019 Contributions.

Here's how to report the excess contribution amount (change 2017 to 2018):

https://ttlc.intuit.com/replies/6871546

[TTUserfromCA]

Hi @TurboTaxMarilynG , I didn't realize that my response was specific to @macuser_22 , but as I mentioned to him, there is still this looping error. Please find here the steps I followed:

- My spouse has an excess contribution due to job changes in 2018
- I have the CD/download version of TurboTax and encountered this error in the "Review" tab
- I have implemented your recommendation - 2019 1099-R code P (since I already have this done)
- this now reflects under my Federal Taxes > Wages & Income > Retirement Plans and Social Security > IRA, 401(k), Pension Plan Withdrawals (1099-R) under the 2018 column
- I go to Federal Taxes > Smart Check and see the warning in 12b and ignore and proceed to the Review tab
- the Review tab analysis also provides me this warning on 12b
- I continue on to File > File a Return > Transmit Your Returns (Transmit Returns Now). This is going into a loop...

Transmit Your Returns (Transmit Returns Now) > We Need to Make One More Check (Continue) > Check This Entry [12b warning] (Continue) > Transmit Your Returns (Transmit Returns Now)

Any idea how to get this fixed? I paid for the e-file as part of the package for Federal and also paid on top of that for the State-level and would really want this done e-filed via TurboTax.

[macuser_22]

We will have to wait and see if the 4/5 update fixes it of not - as of now it is not clear if it will not not.  (As with all updates they are usually applied late in the evening and sometimes get delayed if there are problems.)

[TTUserfromCA]

@TurboTaxMarilynG , @macuser_22 , I deleted the 1099-R code P option and did the Less Common Income option and went to proceed to Transmit Your Returns and I still get the infinite loop...

That means the 4/5 fix did NOT fix the issue. Can you help provide the solution on what to do to e-File now? I paid for this product and was asked to pay for the State E-file as well before this error popped out. This is very frustrating and disappointing.

[macuser_22]

As of now there does not appear to be a solution  other then print and mail.    The previous FAQ that said 4/5 has been marked as "solved" and the FAQ now says to print and mail.  I have asked the Moderators for clarification, but so far no answer.  (Probably not before Monday now that it a weekend).

This is the current FAQ:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4698409-excess-401-k-contribution-preventing-e-file">https://ttlc....>

[TTUserfromCA]

@TurboTaxMarilynG, @macuser_22 , I'm now beyond frustrated and disappointed and have to do my filing myself and so close to the deadline. This is unacceptable for a product that supposedly will do the e-file.

Can you tell me where I can get my money back and compensation for the stress this mis-advertisement (both of the product saying they can do my e-filing for me and for the extra State e-file they sold me but failed to do in just the next screen) has brought to me?

[macuser_22]

Sorry, I cannot help with that - I am just another user and nobody in this forum can see your account.  You would have to contact TurboTax customer support directly for refund issues.

I know that customer support can refund the extra costs for state e-file if you are not able to e-file.  I don't know if they can refund anything more than that since there is no guarantee that you can e-file - the price for preparing the tax return is the same whether you e-file or mail file.

[TTUserfromCA]

@macuser_22, you've been very helpful. I misconstrued you as a TurboTax employee because you've been knowledgeable and diligent in responding. I hope they pay you for what you do.

With regard to the refund, I think they should refund both the base product and the State e-file. Because they said that the base product will be able to e-file and it wasn't able to for me (to be clear: the product I bought is clearly labeled as TurboTax [Deluxe] - Federal Returns | Federal e-File | State Returns). Granted it can still generate a tax return, it was mis-advertised from the very beginning and led people to believe they can get it done through to an e-file. And the issue here is with Excess Deferrals which I believe is not a new 2018 functionality. And for a product as widely used as TurboTax, this is an unacceptable issue and a huge burden to its long time users. And then there's the promise to get it fixed on April 5th, which also didn't work and now puts us into the situation where we are so close to the deadline of filing and we have to rush to send these all out manually. This is very frustrating and disappointing.

[jimmythefung]

I talked to customer service and they issued me full refund for state + efile. For the original TurboTax Deluxe that I purchased through Amazon, I called Amazon to get a refund as well.

In terms of what I did next, I went to H&R Block web software. They're able to read turbo tax format data from last year... so I am not starting from scratch. Hope that helps. I understand that you're disappointed, but rationally speaking it'd be in your best interest to just focus finish filing the taxes before the April 15 deadline. As much as I was also disappointed, I wouldn't spend time seeking further compensation from Turbotax other than a phone call for refund.

[TTUserfromCA]

Thanks, @jimmythefung . What number did you call to request for the refund for at least the State e-file refund? I bought my Deluxe from CostCo physically, so I would have to call them instead.

[jimmythefung]

Use this link to get to custom support: <a rel="nofollow" target="_blank" href="https://support.turbotax.intuit.com/contact/">https://support.turbotax.intuit.com/contact/</a>

[macuser_22]

TurboTax has released a FAQ on this issue - the answer is to print and mail the return.

Excess 401(k) Contribution Preventing e-File

https://ttlc.intuit.com/replies/7327357

[TTUserfromCA]

@TurboTaxMarilynG and @macuser_22, thanks for both your suggestions.

I was able to do MarilynG's recommendation, but it did not reduce the amount in W-2 section 12b when I do my "Review" phase of TurboTax and therefore still cannot complete my tax filing.

For macuser_22's recommendation, I chose option 8 instead of P, since P is for 2017. But it is asking me for Vanguard's Federal ID number which I do not have. Also, the same issue on 12b not allowing me to proceed past the "Review" phase persists...

Any help you can provide to get through this will be highly appreciated.

Btw, already submitted the Letter of Intent (LOI) or withdrawal form to Vanguard but not sure how long it will take to get the actual 1099-R, so I was trying to simulate it myself as suggested by macuser_22.

[macuser_22]

No - P is for 2018 if returned in 2019.    The interview asks what year the 1099-R is for and when you say 2019 the year advances by one so it is taxable in 2018, not 2017.   Code P is correct.  

A code 8 means it was a 2018 contribution returned in 2018 which is was not or you would have received a 2018 1099-R.