Question

Excess 401K contribution, withdrawn, W2 correction? need Taxreturns help

Forum|Forum|7 years ago
June 5, 2019
2 replies
0 views

1. I made ($3250.00) excess 401K contribution for 2017 to my fidelity account through employer

2. I requested my employer 401k group manager make a request to withdraw excess contribution from my 401K account

3. Fidelity sent me the check 3250 in Jan 2018

1. Employer issued W2, that has the amount inlcuding excess contribution

2. Employer needs to amend my W2 ?, to show the correct amount of 401K contribution minus excess contribution withdrawal ?

3. I haven't received the 1099R from Fidelity, for excess contribution withdrawal

Please give me the instructions, how to include it in the tax returns.

TurboTax Deluxe Windows

RachelW33

No, your Employer does not need to amend your W2, you should input it into TurboTax exactly how it appears, with the excess deferral to your 401(k).

You can report the refund of the excess contributions to your 401K on Line 7 of your 2017 Tax Return without a Form 1099-R by following these steps:

Click on the "Federal Taxes" Tab
Click on the "Wages & Income" Tab
Click on "I'll choose what I work on"
Scroll down to "Less Common Income"
Select "Miscellaneous Income" and click Start or Update
Select "Other income not already reported on a Form W-2 or Form 1099" and click on Start
Answer the Question "Did you receive any other wages? Yes
Click through the questions until you get to "Any Other Earned Income"
Answer Yes to "Did you earn any other wages?
Indicate "Other" as Source of Other Earned Income and click Continue
For the description enter "2017 Excess 401K Deferrals" and click on Done

You will receive a 2018 Form 1099-R in 2019 with a code P in box 7 which you can ignore if the excess deferral is reported as suggested above. However, the earnings (if any) will be reported on a separate 2018 Form 1099-R with a Code "8" in Box 7 that should be reported on your 2018 tax return.

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N

natalieminyu

If I am amending my 2017 return to include 2017 Excess 401K Deferrals as Source of Other Earned Income, would I need to send any documentation along with the amended return in the mail?

T

turkeymooney

Is this fixed now for 2019 tax filing? I just found out I have excess deferral. Just to confirm, my employer doesn't need to make an amended W-2, correct? They just need to send 1099-R for 2019 and a check for the excess before April 15?