How do I treat 401k excess contribution if plan sponsor and I can't meet April filing deadline?

I switched employers in 2018 and, due to a calculation error on my end, over-funded my 401k. My plan sponsor's deadline to provide an excess contribution distribution was March 1st and says I am too late to go through that process. 

It is clear that I will be double-taxed (it's too bad, but fine) and I will keep pushing my plan sponsor to see if they can make an exception for me, but I am having trouble understanding how I need to fill out my 2018 tax return, assuming I CAN'T get the distribution and amended W-2 before 4/15/18. 

I'm guessing the step is something like going back to my W-2 information and reclassifying my income so that less of it is tax-free and I don't exceed 18,500 in the 401k distribution box on my tax forms. Then do I also need to pursue a 1099-R in parallel to distribute the difference (which I will declare on my 2019 tax return). Is there something else i need to do? 

I am clear that I will be taxed twice, but am not sure how to do the proper accounting in 2018  and forms to fill out to make sure everything goes through appropriately... my plan sponsor is not being helpful.

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community
Default