I worked for two companies who both took out 401k deductions. The total for the two W2's for box 12b adds up to $25,106 which is more than the allowed $24,500. The Smart Check is asking me to check my entries. The entries are correct and the total for 12b is $25,106. Do I just ignore the warning and process my return?
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If you deferred more than $24,500, you should contact one of the Plan Administrators to distribute the excess amount by April 15, 2019, or you will end up being taxed on this money twice. See Page 10 of IRS Pub 525 for more details on "excess contributions" and how they are handled: https://www.irs.gov/pub/irs-pdf/p525.pdf
You need to report the excess contributions to your 401K on Line 1 of your 2018 Tax Return by following these steps:
If you deferred more than $24,500, you should contact one of the Plan Administrators to distribute the excess amount by April 15, 2019, or you will end up being taxed on this money twice. See Page 10 of IRS Pub 525 for more details on "excess contributions" and how they are handled: https://www.irs.gov/pub/irs-pdf/p525.pdf
You need to report the excess contributions to your 401K on Line 1 of your 2018 Tax Return by following these steps:
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