401k gave me wrong excess deferral?

Anonymous — Wed, 05 Jun 2019 03:11:47 GMT

My wife overcontributed to her 401k by $2800 due to a job change (2 different 401k providers in 1 year). We contacted the 401k provider and they sent us a check for $2690. The slip that comes with the check says that all of the $2690 is taxable and has no reference to "$2800" or gains/loss.

I called the 401k provider to ask why it was $2690 taken out and not $2800 as we requested. They said that they removed the gain/loss associated with the $2800 and the result was $2690 and that the "excess takes care of it" (???).

What do I put in my "Other Wages Received" section in Turbo Tax to account for this excess deferral? if I put $2690, we will still be $110 excess overcontributed technically. I could put the $2800, but I don't have documentation that it was $2800 taken out, since the slip only says $2690.

You should include the full amount of the 401(K) excess d...

Rachel_W — Wed, 05 Jun 2019 03:11:49 GMT

You should include the full amount of the 401(K) excess deferral, $2,800, as wages on your 2018 Form 1040.

On your 2019 Tax Return, you can include the $110 loss as a negative amount on Schedule 1, line 21 of your 2019 Form 1040. You can identify the loss as “Loss on Excess Deferral Distribution.”

To include your wife's overcontribution of $2,800 on your 2018 Tax Return, please follow these steps:

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"

topic 401k gave me wrong excess deferral? in Retirement tax questions

401k gave me wrong excess deferral?

You should include the full amount of the 401(K) excess d...