topic What code is in box 7? in Retirement tax questions

How to handle 1099-R?

mptpat115 — Thu, 06 Jun 2019 10:03:36 GMT

I had made excess 401K contribution in 2015.

The money was refunded in 2016 and I received a 1099-R saying this is taxable amount.

When I prepared 2015 return, would TurboTax have caught & disallowed this excess contribution and included in my income anyways?

In other words, do I have to amend 2015 tax return?

Thanks.

What code is in box 7?

macuser_22 — Thu, 06 Jun 2019 10:03:37 GMT

What code is in box 7?

A code "P" indicates that you had an excess 2015 deferral...

macuser_22 — Thu, 06 Jun 2019 10:03:40 GMT

A code "P" indicates that you had an excess 2015 deferral returned in 2016. That is taxable in 2015 which will require an amended 2015 tax return to report it.

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

https://ttlc.intuit.com/replies/3288565

Thanks for your response. So, you are implying Turbotax d...

mptpat115 — Thu, 06 Jun 2019 10:03:43 GMT

Thanks for your response. So, you are implying Turbotax did not catch this was an excess contribution in 2015. Will that not be unusual? If they can catch excess IRA contribution, why not excess 401K?

The excess must be reported to TurboTax with a 1099-R. T...

macuser_22 — Thu, 06 Jun 2019 10:03:45 GMT

The excess must be reported to TurboTax with a 1099-R. TurboTax will not catch IRA contribution excess either until you enter the contribution.

There is nothing in TurboTax that tracks 401(k) contributions - those are tracked by the employer.

What I meant was - when the W2s are imported into Turbota...

mptpat115 — Thu, 06 Jun 2019 10:03:46 GMT

What I meant was - when the W2s are imported into Turbotax, it knows what are the 401K contributions. At that point, you would think that it will catch the excess. Just like, when I enter my IRA contribution in Turbotax, it will tell me if there was an excess.

It does not do that - never has. Might be a nice enhanc...

macuser_22 — Thu, 06 Jun 2019 10:03:47 GMT

It does not do that - never has. Might be a nice enhancement though.