Roth TSP and Roth 401k (excess Deferral)

Forum|Forum|2 years ago
March 24, 2024
2 replies
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Hello,

In 2023 I exceeded the $22,500 contribution limit between my Roth TSP and Roth 401(k) accounts. The good news is that I was able work with my plan administrator to pull the excess contributions from my Roth TSP before the April 15 deadline.

However, I am unsure how this will affect my 2023 tax filing. Will I need to fill out a 1099R for 2023 or for 2024? Will I be taxed or penalized for over contributing? What should I do with the excess deferral?

Best answer by dmertz

This has no effect on your 2023 filing. Any attributable investment gains required to accompany the returned contribution will be taxable on your 2024 by entering into 2024 TurboTax the 2024 Form 1099-R that you will receive near the end of January 2025.

dmertzAnswer

Employee

davidgukichAuthor

Thank you so much! How will this affect my W2 when filing? Currently, Box 12 shows the excess deferral amount but if this is being refunded then should I leave box 12 blank?

dmertz

Employee

Enter the Form W-2 as received.

davidgukichAuthor

Will I need an amended W2 or am I leaving the excess deferral amount in box 12 because it’s a roth account and it’s already been taxed?
I’m a little confused as to why I am reporting the excess deferrals in box 12 when I pulled the money out. I don’t want the IRS to think I have over contributed when the issue was resolved.