Noticed excess 401K contribution just before filing deadline

[Best-dad]

Hi, I noticed excess contributions to my 401K due to a job change when preparing my 2023 taxes in April. TurboTax advised to "Report the excess deferral on your 2023 return in the Income section for Retirement Plans and Social Security whether or not you received a Form 1099-R before you file your return. Enter as much information as you can. Report the excess deferral amount in boxes 1 and 2a, and use code P in box 7. Indicate that this is a 2024 Form"

I just requested the return of excess contributions with Fidelity Investments. The problem I have with entering it as TurboTax advises is that adding a 1099 requires a mandatory TIN for the payor, which I do not have yet. I called Fidelity Investments and they said I will receive it when I get the 1099-R later in 2024, but need to submit taxes before I get it. What should someone put for the TIN for the payor of a future 1099-R before receiving it?

[DanaB27 · Accepted solution]

You must include the excess deferral in your wages in the year the excess deferral happened. 

Another option to enter the excess deferral is following the steps below:

1. Login to your TurboTax Account 
2. Click "Wages & Income" (under Federal) on the left side of your screen
3. Scroll  down to "Less Common Income" and click "Show More"
4. Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
5. Select "Other income not already reported on a Form W-2 or Form 1099" and click "Start"
6. On the "Did you receive any other wages?" screen answer "Yes" and click "Continue"
7. Continue until you get to the "Any other earned income" screen, answer "Yes" and click "Continue"
8. On the "Enter Source of Other Earned income" screen select "Other" and click "Continue"
9. On the "Any Other Earned Income" screen enter "2023 Excess 401(k) Deferrals" for the description, enter the amount and click "Done".

If you receive the distribution of the excess deferral and earnings by April 15th then please note for the Tax Year 2024 tax filing due April 15, 2025: 

Two 2024 Forms 1099-R will be issued reporting the excess.

• Form 1099-R with Code P in box 7 can be ignored if you reported the excess as described above in 2023. 
• However, the earnings on Form 1099-R with Code 8 in box 7 should be reported in 2024.

Please see Pub 525 for additional information.