Overcontributed to my Roth 403(b), excess removed before April 15 but W-2 still shows full amount. No report received - how to report in Turbotax to avoid double tax?

Forum|Forum|11 months ago
April 15, 2025
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I accidentally overcontributed to my Roth 403(b), but the plan administrator helped remove the excess contribution before the April 15 deadline. However, my W-2 still shows the full (overcontributed) amount. I didn’t receive any separate tax form or report confirming the removal of the excess contribution. Where in TurboTax should I report this, to make sure I’m not taxed again on the excess? Since this is a Roth 403(b), the contributions were made with after-tax dollars, and I want to avoid any double taxation.

DanaB27

You do not need to enter anything on your 2024 tax return since Roth 403(b) contributions are after-tax contribution. Therefore, it is not necessary to add anything to your wages. You will get a 2025 Form 1099-R with code 8 in 2026 to report any gains on the excess and this will be entered next year on your 2025 return. You can ignore the 2025 Form 1099-R with code P and B.

Please see Pub 525 for additional information.

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DusitAuthor

Thank you so much, Dana! However, the W-2 reports the amount we contributed before we withdrew the excess. What should we do in this case?

DanaB27

You can ignore that the W-2 still shows the excess since you withdrew it before April 15th, 2025 you fixed it. The IRS will get the Form 1099-R to inform them that you withdrew the excess in time.

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