Question

Solo401K question - how to report excess contribution withdrawal

Forum|Forum|4 years ago
April 5, 2022
1 reply
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I am self employed and have a solo401K. I contributed the limit of $19,500 for 2021 taxes as employee to a my Roth solo401K fund. I misunderstood income/contribution limits since I am first time filing married with a higher combined income this year - and I immediately withdrew the $19,500 the next day as excess contribution (thinking I couldn't contribute any funds to a Roth account).

Now I have since realized that I can put the funds into a Roth IRA (as long as it is in my solo401K fund) and so I re-deposited $19,000 into that fund.

Question is - how do I report this on turbo tax. I didn't have any earnings on the funds I withdrew (actually lost a few hundred dollars with the withdrawal). I wasn't given any documents/forms for the excess contribution withdrawal.

In the business portion of turbotax I listed $19,000 as my Roth solo 401k contribution (as that is the net contributed) - is that all I need to do? Or do I need to somehow report $38,500 (19,000+19,500) as total contributed and then have a 1099-R form for the amount withdrawn?

Thanks for any help.

TurboTax Home & Biz Windows

R

RobertB4444

Just put the $19,000 net contribution into TurboTax. If you receive a 1099-R showing all this mess in 2022, though, be prepared to explain yourself if you receive a letter from the IRS.

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