Do I have to remove the excess 401k contribution from my w2 (income section) after having report them as misc. income in TT to efile? TT will not let me efile otherwise.

[macuser_22]

"P-Return of contribution taxable in 2017"  UNTIL you get to the next screen and it asks if it is a 2018 or 2019 1099-R- say 2019 and then it means "P-Return of contribution taxable in 2018" - the year advanced by 1.

BTW: this ONLY means that you are adding the excess to the 1040 line 1 wages so that you will not need to amend next year to add it to the 2018 tax return a year from now when  you receive the 1099-R.   This has NOTHING to do with not being able to e-file with a W-2 excess - reporting the excess does not change that.  You still must print and mail, and the W-2 must still report the excess.

[markib85]

@macuser_22
I also added the 401k over contribution to (LESS COMMON INCOME) MISC INCOME section. TT states this is for excess deferrals on 401k contributions if you read the instructions in that section?

Would it hurt to leave it in there? My overage is $50 so i would rather be safe then sorry.

[macuser_22]

Just two different ways to do the exact same thing.   Either the 1099-R or Misc Income simply add the excess to the 1040 line 1.  Use whichever method seems easiest for you.    

Many get confused by the year with the 1099-R code P method, but the Misc income method has many steps and screens to go through to get to the place to enter the excess.

[khans6uf]

Folks, I am going to try to file without a 1099R as I had been told that youdon’t need to wait for the 1099r to file my taxes. My wages have been corrected by TT to include the excess 401k (through the misc income section). I am also including a worksheet that TT generates that shows that I am filing excess for 401k. Lastly I am including a typed letter explaining this discrepancy. I am hoping that will suffice as the 1099r seems complicated and I was told was not required to file taxes.

[khans6uf]

@macuser_22 any thoughts on that? Not filing the 1099r that is

[macuser_22]

When the 1099-R comes in Jan of 2020 you will have to amend 2018 to report it.  The excess must be added to income for the tax year that the excess was made in.  You can just wait until next year if you prefer.  Reporting it now is not required.

This will add the returned excess to your 2018 wages on line 1 exactly the same way that the 1099-R would.  The only information that is sent to the IRS is the line 1 amount.


Excess 401(k) deferrals should be reported in:
(There are several screens to click through to get to the right place)

Miscellionious Income ->
Other Income not reported on a W-2 ->
Other wages (yes) ->
House Hold employee (Continue) ->
Sick Pay (Continue) ->
Other earned income (yes) (Includes excess salary deferrals)->
Source of income (other) ->
Any other income - enter the amount of the excess deferral and an explanation.

[Note: If there were any earning that were returned in 2019 then the earnings will be reported on a separate 2019 1099-R with a code 8 that goes on your 2019 tax return - do  not enter the earnings here.]

For information see IRS Pub 525 page 10
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p525.pdf">https://www.irs.gov/pub/irs-pdf/p525.pdf</a>

[khans6uf]

@macuser_22 thanks. I am trying to understand your response. So I already have the excess showing up on my wages now as I filed it through the misc income (and am paying the taxes on that with the 2018 return itself). I am guessing I don’t need to include a manually generated 1099 r with this 2018 return right?  Am I good for this tax return?

Lastly, Will I have to do anything when I file my 2019 return in 2020 (once I receive the 1099 r) as I have already reported the excess in this return? I wasn’t clear if this was answered from your response but thanks for your help here

[macuser_22]

If the excess was added to the 1040 line 1 you are done and can ignore the 1099-R with the code P when it comes.  (Don't add it twice by using both methods).

If you receive another 1099-R with a code 8 then that is to be entered in 2019 to report any earnings returned in 2019.

[markib85]

@macuser_22
Do i adjust my 1040 12b after doing all the above? (subtract my over contribution from the annual total allowed thus making the number in 12b is 18,500)
-TT is still complaining as i try to print my taxes now.

[macuser_22]

While that would allow e-file, it would be filing a false tax return.  Your W-2 is reporting what actually occurred in 2018 and you cannot change history.   Why you report will not match what the employer reported and the difference between your W-2 box a and box 3 will not be accounted for in box 12.   That could be a big red audit frag to the IRS.  I would not file a false W-2 just to bypass a TurboTax bug.

[macuser_22]

Just announced:   An update currently planned for April 12th, 2019 will resolve the issue of a looping interview preventing e-file.  You may still see a warning of excess contribution, but e-file will be available.

[markib85]

Where do you see this announcement?
12th is cutting it very close considering paper file requires a lot of double checking and essentially an entire trees sacrifice.

[macuser_22]

File an extension to file (not pay).
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1900551-can-irs-extensions-be-e-filed">https://ttlc.intuit.com/que...>


<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4698409-excess-401-k-contribution-preventing-e-file">https://ttlc....>

[markib85]

@macuser_22
So I got my 401k excess return check and it's $5 short of my requested return amount keeping me over the $18,500 limit.
On the 1099-R should I list the amount returned to me or the amount requested?
In my situation the amount is so low I don't mind being taxed a few extra dollars in order to have this problem just go away and not have to deal with it next year through amended returns...

[macuser_22]

The amount returned.     Nothing other then the 4/12 update to fix the bug will allow e-file.