Question

What about excess contribution to a ROTH 401k?

Forum|Forum|7 years ago
June 1, 2019
1 reply
0 views

All the answers so far are on traditional 401k. How do you handle excess ROTH 401k contributions? Where do you input into the program

TurboTax Premier Online

PopeyeTheSalior

Employee

Here are the steps (online):

Sign into your account, select Take me to my return
To the right upper corner, in the search box, type in "other reportable income" and Enter
Select Jump to other reportable income
Next screen, Other Wages Received, select No to continue
Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
Next screen, Any Other Taxable Income? select Yes to continue

I also attach an older post for your reference. Just change the year to 2018. https://ttlc.intuit.com/replies/6725235

B

BabaPorscheAuthor

I am specifically looking for answer for Roth 401k. The explanation above is for traditional 401k. Since Roth contributions are not tax deductible, it would seem return of excess capital contribution before April 15 2019 also should not create additional income in 2018. The excess earnings (or loss) on the excess contribution will be taxable in 2019 I assume. The steps you explained treats the return of excess contribution as additional income for 2018, not as return of capital. I contact TurboTax tax expert by phone and he also cannot find a place to input the excess capital for the 2018 return. His observation is since the program recognized that I had an excess but did not compute a penalty nor prompt me for additional forms, it must have taken care of it in the background. Unfortunately we can’t verify that. Please help