Author Topic: excess 401k contributions - how to report  (Read 1484 times)

vagabond

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excess 401k contributions - how to report
« on: March 11, 2016, 02:59:56 PM »
I have accidentally over contributed by  couple of hundred $'s to my 401k for 2015. I already reached out to my plan admin and had the excess contribution refunded back to me. Does anybody know how it needs to be reported back when filing taxes. can i do it using the basic version of TT or would I need to get the upgraded version to file , as my taxes are fairly straightforward except for this issue.

jexy103

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Re: excess 401k contributions - how to report
« Reply #1 on: March 14, 2016, 06:12:16 AM »
I'm not sure... you might be all right with their Standard version. You can always try the lower end and then upgrade if necessary.

I remember a few years ago when my ex and I were going through a divorce. He initially refused to file jointly, so I estimated my taxes married filing singly. I didn't know until starting my taxes that my entire $5,000 of Roth IRA contributions were considered overpayments for singly. I finally convinced him to file jointly so that I didn't have to pay penalties on the "excess" contributions. I think I discovered that information just by entering the amount contributed and the filing status.

Also, smart on you for realizing early! I remember looking at the penalties and you'd be penalized for every tax year the excess remained in your account... so if you didn't realize you overpaid $200 one year and continued to max it out each year, you'd lose a lot on that mistake over time!

Proud Foot

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Re: excess 401k contributions - how to report
« Reply #2 on: March 16, 2016, 03:47:45 PM »
Did you have your employer give you a new W-2? Or was the original one correct?  I do not think you should have any issues as long as the W-2 is correct.