I over contributed on 401k last year. Can I still use TurboTax? If so, how?

yijiachen — Sat, 01 Jun 2019 02:22:39 GMT

Yes you can still use TurboTax. In most cases the soluti...

RichardG — Sat, 01 Jun 2019 02:22:41 GMT

Yes you can still use TurboTax. In most cases the solution is to have the excess deferral removed from the plan. According to the IRS:

"You have an excess deferral if the total of your elective deferrals to all plans is more than the elective deferral limit for the year. You may notify your plan administrator before April 15 of the following year that you would like the excess deferral amount, adjusted for any gains and losses, to be paid from the plan. The plan must then pay you that amount plus allocable earnings by April 15 of the year following the year in which the excess occurred.

Excess withdrawn by April 15. If you withdraw the excess deferral for 2016 by April 15, 2017, it is includable in your gross income for 2016, but not for 2017. The April 15 date is not tied to the due date for your return. However, any income earned on the excess deferral taken out is taxable in the tax year in which it is taken out. The distribution is not subject to the additional 10% tax on early distributions."

You should then receive a Form 1099-R for the distribution that you will report in TurboTax under the Retirement Plans and Social Security heading in the program.

topic I over contributed on 401k last year. Can I still use TurboTax? If so, how? in Retirement tax questions

I over contributed on 401k last year. Can I still use TurboTax? If so, how?

Yes you can still use TurboTax. In most cases the soluti...