Turbo Tax won't let me file due to excess contributions to my 401k. However I already filed the 1099-R. What am I supposed to do?

[dmertz]

You said you have it reported under Other reportable income, but you did not say that you entered it there as a negative number.  I just wanted to be sure that the entry you made there is a negative number.  The only place the loss gets entered as a positive number is under Other income not already reported on a Form W-2 or From 1099.  These two entries for the loss on the excess contribution to the traditional 401(k) cancel each other out in your AGI, but make sure that the entire amount of the excess contribution to the traditional IRA is on Form 1040 line 1.

If Schedule 1 line 21 is showing a negative number, it appears that you've done all these things.  I think is didn't fully understate that from your description of the entries.

[rehrenbard]

@dmertz  I see, thank you!

Yes Schedule 1 line 21 is showing the correct negative number.

And when you say it should appear on Form 1040 line 1, you just mean the total over-contributed should add up in my total income right? Regardless of if its from 2 different lines.

And is the payer of the over-contribution my employer? Or myself? Or Fidelity?

[dmertz]

"you just mean the total over-contributed should add up in my total income right? Regardless of if its from 2 different lines."  Yes.  The amount on line 1 of Form 1040 will be sum of box 1 of the W-2, box 2a of the code 8 Form 1099-R and the amount of the loss associated with the excess contribution reported on the code 8 Form 1099-R.

The payer of a Form1099-R is identified in the Payer information box on a Form 1099-R.  If Fidelity is trustee of the plan, I imagine that the payer information would indicate Fidelity as agent for your employer, but that's only a guess.

[rehrenbard]

@dmertz Thank you!

Last question (I absolutely promise) - it is STILL forcing me to file by mail! It seems it is just because I have the excess deferral on my W2. I saw that this might be a bug on TurboTax side and they would post a fix on April 12th. Do you know if that's true? Or will I have to e-file?

Or go forbid something else is wrong haha

Thanks!

[macuser_22]

The latest update for the desktop version has fixed that today.   Online should follow shortly if not already.

[rehrenbard]

@dmertz Thank you Thank you so much for your help! This was so painful and I spent hours reading the help center content and IRS documentation and the wording was SO confusing I could not have figured this out without you! Thanks for being so patient and answering all my questions. Really appreciate it 🙂