topic Tax form regarding 401k excess contribution of 2018 in Retirement tax questions

Tax form regarding 401k excess contribution of 2018

nothing — Sun, 12 Jul 2020 15:01:00 GMT

Hi I worked for two companies in 2018 so I over contributed to 401k. After I found out about this, I contacted the plan owner(previous company) and asked them to return the excess contribution (after tax , and before 4/15/2019) . They returned the money. However, they said I would not get an updated W2. I filled out the tax forms with the estimated number of the federal and state tax.

I would expect either the previous company or the plan owner to send me another tax form for this this year so that I can amend my 2018 tax based on the real numbers. However, I have not received anything from either the previous employer or the plan owner.

Should I contact anyone for this? If so, should I contact the previous employer or the plan owner?

Thank you for your help.

Re: Tax form regarding 401k excess contribution of 2018

macuser_22 — Sun, 12 Jul 2020 15:29:37 GMT

No the W-2 cannot be changed because it reports what was actually contributed.

If returned in 2019 then yiu should have received a 2019 1099-R with a code P in box 7 that would be reported as wages in your 2018 tax return because you must claim the amount that was not reported on the W-2 as wages as if they were on the W-2.

Any earnings attributed to the excess would be reported on a 2nd 1099-R with a code 8 in box 7 that is taxable in the year returned - 2019, so that goes in yiur 2019 tax return.

If you did not receive the 1099-R's then contact the 401(k) plan trustee as there were required by law to issue them no later than Jan 31, 2020.

For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf

Re: Tax form regarding 401k excess contribution of 2018

nothing — Sun, 12 Jul 2020 20:27:03 GMT

Thanks macuser_22!

I just found 1099-R on the plan's website. However, on the form it says "1099-R", and in box 7, the code is "P", which stands for "normal distribution". Is it incorrect? In this case, do I need to contact them for correction?

Also, I am about to file tax return for 2019, whose deadline is in 3 days. In case I cannot receive the corrected 1099-R form, should I fill with the wrong form?

Re: Tax form regarding 401k excess contribution of 2018

fanfare — Sun, 12 Jul 2020 22:50:52 GMT

don't file an incorrect tax return, knowingly or unknowingly.