topic Steps to Take to Remove an Excess Salary Deferral in Get your taxes done using TurboTax

Steps to Take to Remove an Excess Salary Deferral

rbittle — Sun, 22 Mar 2020 21:53:41 GMT

As a result of getting a new job, my wife put $447.58 over the allowed amount into her 401k. The TurboTax instructions say: "Report the excess deferral on your 2019 return in the Income section for Retirement Plans and Social Security whether or not you received a Form 1099-R before you file your return. Enter as much information as you can. Report the excess deferral amount in boxes 1 and 2a, and use code P in box 7. Indicate that this is a 2020 Form 1099-R."

I'm good with all that except the last statement. How do I indicate, "that this is a 2020 Form 1099-R?"

Re: Steps to Take to Remove an Excess Salary Deferral

AnnetteB6 — Mon, 23 Mar 2020 13:30:49 GMT

As you continue through the follow-up questions after entering the information for the Form 1099-R, one of the questions will be what year is the Form 1099-R for -- 2019 or 2020. There you can select the 2020 year.

Re: Steps to Take to Remove an Excess Salary Deferral

rbittle — Mon, 23 Mar 2020 13:42:33 GMT

Thanks! I thought that would be the case, but I didn't see that. I'll run through the process again.

Re: Steps to Take to Remove an Excess Salary Deferral

rbittle — Wed, 25 Mar 2020 10:04:57 GMT

I went through the process again and TurboTax Deluxe 2019 never offered me the choice of making this a 2019 or 2020 1099-R. I also looked in the "forms view" and saw no place to do it there either. Am I missing something?

Re: Steps to Take to Remove an Excess Salary Deferral

AnnetteB6 — Fri, 03 Apr 2020 19:34:14 GMT

I ran through a test case using TurboTax Deluxe just to make sure the advice given earlier was valid. I still saw the follow-up question asking whether the 1099-R was for 2019 or 2020.

One thing to try would be to delete the 1099-R in question and re-enter it, going all the way through the follow-up questions. If that still does not work, take a look at the following picture taken from 'forms mode'. It shows where to find the check box to indicate a 2020 Form 1099-R. Select the Form 1099-R on the left side and scroll to the section pictured below.

@rbittle