In my elective deferrals to 401k I have an overage. How do I amend after I have withdrawn the overage?

[macuser_22]

In what year was the excessive contribution made and what year was it returned?

[Anonymous]

It was in 2018.  I worked for two companies in 2018 and contributed to 401k at both. First company (I was a contractor)  only 2 months. Second company (converted from contractor to Full/time) 10 months.  At the second company I opted for catchup.  I overpaid 2550.  I requested a distribution of 2550 from my current 401K plan which will bring me down to a combined 24500 max.  What I'm trying to figure out - how do I reflect that distribution on my tax form. Do I amend the contribution amount on imported W2 of my current employer?companies and contributed to 401k. First company 2 months. Second company 10 months.  At the second company I opted for catchup.  I overpaid 2550.  I requested a distribution of 2550 from my current 401K plan which will bring me down to the 24500 max.  What I'm trying to figure out - how do I reflect that distribution on my tax form. Do I amend the contribution amount on imported W2 of my current employer?

[macuser_22]

No.  You cannot change the W-2 that reports what happened.   

If the excess was returned *in* 2018 then you should have received a 2018 1099-R with a box 7 code 8 reporting it.
If removed in 2019 you will receive a 2019 1099-R next year with a box 7 code P reporting it.

Which year was it returned?

[Anonymous]

OK - understood about changing reported W2. From my understanding and talking to the plan administrator I have until April 15 for it to be returned.  I have submitted the request to the 401K company and they will send me a check before April 15.

[Anonymous]

I need to revise something on return because I keep getting an error. Saying my elective deferrals - TP $27050 is more than the allowed $24500 for a 401K Plan.  Please check your entries on W2 for 401k Plans.

[macuser_22]

I have seen other complaints about that recently.  It might be a change that TurboTax made.   You should be able to just ignore the error and move on.

If not I suggest contacting customer support,  but you cannot change the W-2 or it will not match what the IRS has.

Here is a TurboTax FAQ for contacting customer support.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number">https://ttlc.intuit.com...>

[macuser_22]

If you have not removed it yet then when  you do before April 15, you will receive a 2019 1099-R next year with a code P in box 7 that will require amending your 2018 tax return to report it.

See answer below.

[macuser_22]

After you remove the excess and yiu know that a 2019 1099-R will be issued, and you have not filed your 2018 tax return then:

You do not need to wait for a 1099-R next year that will probably require you to amend your 2018 tax return to report the excess on line 1 of your tax return - it can be entered this way and then ignore the 2019 1099-R with a code P in box 7 when it comes.

There are two methods to do this:
1) Enter a 1099-R with the returned contribution amount (not including earnings) in box 1 & 2a, and a code "P" in box 7. When asked what year 1099-R say 2019.

or 2)
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.

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.

[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.]

Both methods 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.

For information see IRS Pub 525 page 10
https://www.irs.gov/pub/irs-pdf/p525.pdf

[macuser_22]

TurboTax has released a FAQ on this issue - the answer is to print and mail the return.

Excess 401(k) Contribution Preventing e-File

https://ttlc.intuit.com/replies/7327357