Question

1099-R Box 7 - Code 8 entered but TT still tells me there's an overpayment

Forum|Forum|3 years ago
February 1, 2023
1 reply
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I had an over contribution to 401k traditional (due to two jobs in one year) for 2022. I received the overpayment amount in the same year, and it was reflected in a 2022 1099-R from my most recent employer. Entered the 1099-R properly in Turbotax.

When completing the Wages & Income section, it tells me that I have a retirement contribution overpayment in the the amount that I entered in the 1099-R. Note that I already paid taxes on it, as reflected in the 1099-R. Does Turbotax not recognize the already-entered 1099-R Code 8 in its calculations?

D

DanaB27

You can ignore the message since you got the excess deferral removed and entered Form 1099-R in TurboTax. Entering Form 1099-R with code 8 for the excess deferral will add the excess deferral amount to your wages on your 2022 tax return. You can check line 1 on Form 1040.

Please see Pub 525 for additional information.

Please be aware, there won't be any penalty calculated for a 401(k) excess (only for IRA excess contributions). Therefore, you can ignore the message.

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