How to Report Loss on Excess 401k Contribution

mrcrull — Tue, 24 Feb 2026 07:08:09 GMT

I mistakenly over contributed to my 401k due to multiple employers. I recognized this mistake, had the excess contribution returned, and know how to report this excess contribution on my tax return for the year thanks to this forum. What I was hoping someone can help with is how to report the loss attributed to excess contribution. My excess contribution was returned minus the loss while invested in the plan. Can I report this loss as a negative amount on the “other income” line of my tax return or is there another way to report the loss?

Thanks in advance for your help.

Re: How to Report Loss on Excess 401k Contribution

dmertz — Wed, 16 Aug 2023 19:24:53 GMT

See IRS Pub 525 where it says,

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. Include the loss as a negative amount on Schedule 1 (Form 1040), line 8z, and identify it as “Loss on Excess Deferral Distribution.”

topic How to Report Loss on Excess 401k Contribution in Retirement tax questions

How to Report Loss on Excess 401k Contribution

Re: How to Report Loss on Excess 401k Contribution