Question

2024 ROTH 401k excessive contribution

Forum|Forum|1 year ago
April 1, 2025
1 reply
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I have over contributed $1381 to my ROTH 401k for 2024 due to changing jobs. I contacted the plan administrator and they executed a plan withdrawal and sent me a check for $1378 ($3 net loss) in March 2025. Plan administrator also stated that I would receive a 1099-R for this distribution in January 2026. How do I go about reporting this in TT premier for 2024 return? I have read posts about reporting this as other income, but not sure that is correct in my situation with after tax dollars funding Roth. Would appreciate guidance.

Thanks.

D

DanaB27

You do not need to add excess deferral to your 2024 wages because this excess was made to a Roth 401(k).

Your loss will be reported next year on the 2025 tax return:

Click "Federal" from the left side of your screen
Scroll down to "Less Common Income" and click "Show More"
Scroll down to "Miscellaneous Income, 1099-A, 1099-C" and click "Start"
Select "Other reportable income" and click "Start"
Answer "Yes" to "Any Other Taxable Income?"
Enter "Loss on Excess Deferral Distribution” and enter the loss as a negative number (-$3)