Originally Posted by Wnhough
sorry, i am not familiar with TT, you need to contact TT vendor for tech help in detail
-just for ure, u my o thru the TT processes over againas you can see, you need to
report a loss on a corrective distribution of an excess deferral in the year the excess amount ,reduced by the loss, is distributed to you. Also youneed to include the loss as a negative amount on Form 1040, line 21 and identify it as ?Loss on Excess Deferral Distribution.
Just for a reference, the excess/ overcontributed amt should be returned to you by April 15 , I mean, say, for example, if the excess deferral --occurred in, say, 2018, it should be corrected that is, removed from the account by April 15 of 2019. This sum should include earnings accrued on the excess amount while it was in your account. And ofcourse, you are required to add the earnings to your taxable income for the year the excess amount is distributed from your 401(k). In addition, if the excess amount was deferred on a pre-tax basis, your employer must amend your W-2 Form to show the returned amount as wages. Also, aslongas the excess contribution is returned to you, then, even any earnings generated and included in the amount returned to you should be added to your taxable income on your tax return for that year. If the excess contribution is returned to you 2018, for example, any earnings included in the amount returned to you should be added to your taxable income on the tax return that you file in 2019.hoewver, unless the excess amount is returned to you by April 15, you could pay taxes on the amount twice in the year the excess occurred and in the year it is returned to you??