Question

Excess 401K contribution made in 2019, was distributed in 2020 but from Traditional and Roth 401k Accounts

Forum|Forum|6 years ago
January 31, 2020
1 reply
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I had made exceed contributions to my 401k (Traditional and Roth 401k) in year 2019, and was able to get it distributed only in year 2020. It seems that I won't be receiving any 1099-R documents to file in year 2020, to file for 2019 Taxes, but I do see an indication that I will receive 4 seperate 1099-R forms in year 2021, to file for 2020 Taxes. All 4 forms have different codes (8, 8B, P, and PB).

Can someone explain how I will file these in both 2019 Taxes and 2020 Taxes? Not sure how to 8vs8B and PvsPB codes should be applied....

Do I only report the excess contributions made in 2019 for the 2019 tax returns, and how through the turbo tax software? Do the Traditional 401K exceed contribution (~$600) and Roth 401k excess contributions (~$300) reported differently ?

D

DianeC958

If you removed the excess contributions during 2020 you will receive 1099-Rs to report on your 2020 tax return.

The excess contributions you made for 2019 will produce a form 8606 in your tax return. When you report the 1099-Rs the form 8606 indicates that you did not receive a deduction for these contributions and will not add them into income to be taxed.

You are correct that you only report the excess contributions made for 2019 in your 2019 tax return.

No, the Roth IRA and the regular IRA excess contributions are not reported differently, they are both reported on form 8606.

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