How to report 2025 return of excess contribution for 403b plan?

[user17727448620]

•  Report Excess Roth IRA contributions + interest withdrawn?
• I had overcontributed to 2025 403b plan due to job switch and corrected already with return of excess contribution form before 4/15/26 deadline 
• Excess deferral amount = $179.82
• Earnings amount = $18.14
• Fidelity will mail me tax statement for tax year 2026 in 2027
• Asked Fidelity to withhold taxes however they gave me a check with the full amount of untaxed money 

How will I be reporting this Excess contribution and earnings earned for tax year 2025 on TurboTax? Would I need to add 1099-R form or 1099-MISC for Excess deferral amount $179.82 and another 1099-R or 1099-MISC for the earnings amount $18.14? 

Question: 

Should I report both Excess deferral and earnings in my 2025 tax return that I am submitting now by creating my own 1099-R or should I wait till next tax year 2026 to report both the excess deferral or just earnings? I do not wish to make corrections for 2025 tax year. 

[ReneV4 · Accepted solution]

Reporting this correction of an excess 403(b) deferral involves two different tax years because the contribution took place in 2025, but the withdrawal took place in 2026.

The excess deferral amount of $179.82 should be included in your 2025 tax return because the IRS requires you to include this taxable amount in the year it was contributed.

However, the earnings amount of $18.14 will be reported on your 2026 tax return.

Therefore, do not create your own Form 1099-R as part of the correction, since the distribution is a 2026 event.

Instead, you can add the deferral amount by following these steps:

1. Navigate to Wages & Income
2. Scroll down to find Less Common Income and click the down arrow to show more options
3. Select Miscellaneous Income, then Start
4. Select Other Reportable Income, then Start
5. Click + Add and enter a description like "Excess 403(b) deferral for 2025" and enter the amount ($179.82), Continue
6. Next year, you should receive a Form 1099-R to report the $18.14 on your 2026 tax return

[user17727448620]

I have made the change as miscellaneous income, and $179.82 shows up on Form 1040 line 1h.

When I receive a 1099-R in 2027 (Tax year 2026), there should be 2 forms.

Should I report or ignore the $179.82 on the Form 1099-R since I already reported it on my 2025 tax return? Even if it's code P, do I still report it in 2026? - As it is already taxed in 2025, and should not affect my 2026 taxes.

I will report the 1099-R for earnings $18.14 on my 2026 tax return. Form 1099-R Code 8

[ReneV4]

Even though you have already reported the $179.82, you will still need to report it when you receive your 1099-R next year, so enter it exactly as it appears.

The important things to look for in the Form 1099-R are the taxable amount in Box 2a ($18.14) and the code(s) used in Box 7 (Code 8).

TurboTax will ask about the amount in Box 2a in a subsequent screen, where you will indicate that this was a return of excess contributions already taxed in a prior year.