Question

Excess 403b Deferral in 2019

Forum|Forum|6 years ago
April 9, 2020
1 reply
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My wife switched jobs in 2019 and went over the contribution limit by $56. I just noticed it now, so I likely won't be able to get it corrected prior to April 15th. Do I need to make adjustments to my 2019 return prior to filing it, or is this something I'll deal with on my 2020 return? Thanks.

D

DavidD66

If the excess is removed prior to April 15, you will not have to report it as income in 2020. If the excess deferral is removed after April 15, you will have to include it in your income in both 2019 and 2020. You will receive a Form 1099-R to include on your 2020 tax return. Any income earned on the excess will be included on the 1099-R. You also need to go ahead and add it to your 2019 income. To do this in TurboTax Online:

Click on Personal
Click on Personal Income
Click on I'll chosse 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 till 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 "2019 Excess 401K Deferrals" and click on Done