Overcontributed to 401(k) in 2018. I alerted the plan administrator and they sent me a check but for a different amount. How do I enter this?

Joan2 — Tue, 04 Jun 2019 20:47:53 GMT

I changed jobs in 2018 and accidentally over-contributed to my 401(k) by $111. I alerted my plan administrator prior to filing taxes, and they sent me a check for $99, but no 1099R.

How do I go about entering this into TurboTax? Do I fill it out under miscellaneous income, or do I fill it out under Retirement Plan income? What do I put in the boxes if under Retirement Plan (111 or 99)?

You should report the excess contributions of $111 on Lin...

Rachel_W — Tue, 04 Jun 2019 20:47:55 GMT

You should report the excess contributions of $111 on Line 1 of your 2018 Tax Return by following these steps in TurboTax Desktop:

Open your return
Click on the "Federal Taxes" Tab
Click on the "Wages & Income" Tab
Click on "I'll choose what I work on"
Scroll down to "Less Common Income" and click "Show More"
Select "Miscellaneous Income" and click "Start or Update"
Select "Other income not already reported on a Form W-2 or Form 1099" and click on "Start"
Answer the Question "Did you receive any other wages? Yes"
Click "Continue" through the questions until you get to "Any Other Earned Income"
Answer "Yes" to "Did you earn any other wages?"
Indicate "Other" as "Source" of Other Earned Income and click "Continue"
For the description enter "2018 Excess 401K Deferrals" and click on "Done"

You will receive a 2019 Form 1099-R in 2020 showing the refund with a code "P" in box 7 which you can ignore if the excess deferral is reported as suggested above. You can report the $12 loss on your corrective distribution on your 2019 Tax Return. Include the loss as a negative amount on Form 1040, line 21 and identify it as “Loss on Excess Deferral Distribution.”

NOTE: There is currently an e-filing issue within TurboTax related to excess contributions so you will need to mail in your return. You can check out this TurboTax FAQ for more information: Excess 401(k) Contribution Preventing E-filing.

topic Overcontributed to 401(k) in 2018. I alerted the plan administrator and they sent me a check but for a different amount. How do I enter this? in Retirement tax questions

Overcontributed to 401(k) in 2018. I alerted the plan administrator and they sent me a check but for a different amount. How do I enter this?

You should report the excess contributions of $111 on Lin...