Excess Roth 401k contributions

[tech_360]

I've seen a few different threads on this but still unsure of how to handle. 

Due to switching jobs in 2025, I ended up with an excess Roth 401k contribution of $292.

The excess contribution happened in Dec 2025. I realized it in January 2026. I notified my current employer, and a correction/reimbursement request was submitted to the 401k administrator in January 2026.

Note: this is an excess Roth 401k contribution, so the $292 should already be captured as income for 2025.

I received a refund check of $291 in February 2026. The check amount is $1 less than the contribution amount given losses.

There is a notice accompanying the check - it states that the refund information needs to be added to my 2025 taxes. It also states that a 1099R will be sent out in next year (2027) to be filed with my 2026 taxes.

Here’s the information that I received along with the check:

• Excess Deferrals: $0.00
• Amount of Refund: $291
• Contributions Already Taxed: 292.00-
• Taxable Amount: $0.00
• Roth 401k Contribution Amount: $292
• Roth 401k Earnings Amount: $1.00-
• Roth First Contribution Date: 2025

TurboTax has already flagged that there is an excess contribution of $292 on my 2025 taxes. TheTurboTax software suggests that I create, and enter, a substitute 1099R for my 2025 taxes.

Is this accurate? If so, 1) what code do I use for the substitute 1099R that i'm creating?  2) which numbers from above go where on the substitute 1099R that I need to submit this year?

Note: When I get the official 1099R next year (2027),TurboTax also suggests that I enter its information on my 2026 taxes.

[ReneV4]

Since yours is a Roth 401(k) contribution, you will need to be careful when creating the substitute Form 1099-R so that you can properly report the handling of this excess contribution.

Here is how to create a substitute Form 1099-R:

1. Go to Income on the left panel within your TurboTax account, then select Wages and income summary at the bottom of the drop down menu
2. Scroll down to Retirement Plans and Social Security and click the down arrow to expand
3. Click Start to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
4. Click on +Add a 1099-R 
5. On the next screen, you can select Type it in myself, then Continue
6. Select the box on the top left for Financial institution or other provider (1099-R), then Continue
7. Enter the provider's information, then Continue
8. Enter the details for your Form 1099-R, using Distribution Code B and Code P in Box 7, then Continue
9. Enter 2025 as the Tax Year, Continue
10. Note: Select "None of these apply". Do not select the, "I need to file a substitute 1099-R" box when you reach, "Do any of these situations apply to you?"
11. Enter the Gross Distribution of $292 in Box 1  
12. Enter zero (0) in Box 2a to avoid double taxation
13. Continue answering the questions, pressing Continue to advance

When you receive your official Form 1099-R in 2027, you will enter that Form when completing your 2026 tax return.

[dmertz]

Nothing about the return of contribution goes on your 2025 tax return because the returned Roth contribution does not add you your 2025 income.  This distribution will also not add to your 2026 income because there were no taxable gains distriubted.