TurboTax Error Re: Excess 401k Deferral

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Topic Author
Sriracha
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TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Thu Mar 21, 2019 11:10 pm

I've read some excess salary deferral threads here, but don't think this particular question has been asked before.

DW worked for two employers last year and had a whopping $174 in Excess 401k Deferrals in 2018.

She contacted her employer already about the issue and the excess plus income earned thereon have already been returned. I know that I have to include the $174 in as income in 2018 even though we won't get a 1099 in that amount until 2019. And I know that the income earned on that amount will be taxed in 2019 (when I'll get the respective 1099).

My problem is with TurboTax, which I'm using for the first time this year.

I was able to get the $174 included in taxable income using the "Excess Salary Deferral" section under TT''s "Any Other Earned Income" section. I went to do the final review and file our returns today and TT keeps giving me the following error: "Forms W-2 and W-2G Summary - Elective Deferrals - TP $24,674 is more than the allowed $24,500 for a 401k plan. Please check your entries on your W-2 for 401K plans."

Well, I know it's $174 too high, but that's what's on the darn W-2s so I can't really go in and change the imported W-2s, right? DW's employer has already said that they will not be amending her W-2. I think I've done everything properly. Shouldn't TurboTax "get it," since I forced TT to include the $174 as an Excess Salary Deferral?

Any help would be appreciated.
Don't reach for yield.

Big Dog
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Big Dog » Thu Mar 21, 2019 11:22 pm

i think you need to make up a 1099R entry for $174 to recapture those dollars back into income in 2018. Then next year, you'll have to report the real 1099R. (yes, taxed twice.)

https://www.irs.gov/retirement-plans/co ... -401k-plan

https://ttlc.intuit.com/questions/39627 ... hould-i-do

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Thu Mar 21, 2019 11:30 pm

Big Dog wrote:
Thu Mar 21, 2019 11:22 pm
i think you need to make up a 1099R entry for $174 to recapture those dollars back into income in 2018. Then next year, you'll have to report the real 1099R. (yes, taxed twice.)
Thanks for the reply, but I don't think I'm on the hook for paying taxes twice on the $174. It's my understanding that that would only happen if the excess deferral and any earning weren't returned to me from the plan until after April 15, 2019. But I've already gotten the $ out of the plan, so I'm OK on that point.
Don't reach for yield.

Katietsu
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Katietsu » Fri Mar 22, 2019 8:52 am

Are you getting that message as an error or just as a warning? In other words, is TurboTax still letting you proceed? If it is just a warning then you are OK. TT is just letting you know that your entry is out of the norm not that it is “wrong.” And these warnings for unusual entries do not often go away just because you entered explanatory information elsewhere.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Fri Mar 22, 2019 2:34 pm

Katietsu wrote:
Fri Mar 22, 2019 8:52 am
Are you getting that message as an error or just as a warning? In other words, is TurboTax still letting you proceed? If it is just a warning then you are OK. TT is just letting you know that your entry is out of the norm not that it is “wrong.” And these warnings for unusual entries do not often go away just because you entered explanatory information elsewhere.
No, TT is not letting me proceed so I guess it's considering this a hard error even though the entries are correct. TT will not let me file the return because of the error. It's completely frustrating.
Don't reach for yield.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Sat Mar 23, 2019 11:30 am

One bump ... hoping for a helping hand.
Don't reach for yield.

anoop
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Re: TurboTax Error Re: Excess 401k Deferral

Post by anoop » Sat Mar 23, 2019 11:41 am

Sriracha wrote:
Sat Mar 23, 2019 11:30 am
One bump ... hoping for a helping hand.
Have you checked with HR if they will be issuing a new W-2. The update W-2 should show the lowered contribution and higher salary. That is the one TT can then work it. You can also try and go to https://groups.google.com/forum/#!forum ... .moderated for advice. I personally think a w2c will clear it all up.

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HueyLD
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Re: TurboTax Error Re: Excess 401k Deferral

Post by HueyLD » Sat Mar 23, 2019 2:01 pm

Sriracha wrote:
Thu Mar 21, 2019 11:10 pm
I've read some excess salary deferral threads here, but don't think this particular question has been asked before.

DW worked for two employers last year and had a whopping $174 in Excess 401k Deferrals in 2018.

She contacted her employer already about the issue and the excess plus income earned thereon have already been returned. I know that I have to include the $174 in as income in 2018 even though we won't get a 1099 in that amount until 2019. And I know that the income earned on that amount will be taxed in 2019 (when I'll get the respective 1099).

My problem is with TurboTax, which I'm using for the first time this year.

I was able to get the $174 included in taxable income using the "Excess Salary Deferral" section under TT''s "Any Other Earned Income" section. I went to do the final review and file our returns today and TT keeps giving me the following error: "Forms W-2 and W-2G Summary - Elective Deferrals - TP $24,674 is more than the allowed $24,500 for a 401k plan. Please check your entries on your W-2 for 401K plans."

Well, I know it's $174 too high, but that's what's on the darn W-2s so I can't really go in and change the imported W-2s, right? DW's employer has already said that they will not be amending her W-2. I think I've done everything properly. Shouldn't TurboTax "get it," since I forced TT to include the $174 as an Excess Salary Deferral?

Any help would be appreciated.
Go back to one of the W-2s and reduce the 401(k) contribution amount in box 12 (next to code D) by $174.

That should fix the e-filing problem. You may want to attach an explanation to your tax return for this situation.

Good luck.

Alan S.
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Alan S. » Sat Mar 23, 2019 5:29 pm

Sriracha wrote:
Thu Mar 21, 2019 11:10 pm
I've read some excess salary deferral threads here, but don't think this particular question has been asked before.

DW worked for two employers last year and had a whopping $174 in Excess 401k Deferrals in 2018.

She contacted her employer already about the issue and the excess plus income earned thereon have already been returned. I know that I have to include the $174 in as income in 2018 even though we won't get a 1099 in that amount until 2019. And I know that the income earned on that amount will be taxed in 2019 (when I'll get the respective 1099).

My problem is with TurboTax, which I'm using for the first time this year.

I was able to get the $174 included in taxable income using the "Excess Salary Deferral" section under TT''s "Any Other Earned Income" section. I went to do the final review and file our returns today and TT keeps giving me the following error: "Forms W-2 and W-2G Summary - Elective Deferrals - TP $24,674 is more than the allowed $24,500 for a 401k plan. Please check your entries on your W-2 for 401K plans."

Well, I know it's $174 too high, but that's what's on the darn W-2s so I can't really go in and change the imported W-2s, right? DW's employer has already said that they will not be amending her W-2. I think I've done everything properly. Shouldn't TurboTax "get it," since I forced TT to include the $174 as an Excess Salary Deferral?

Any help would be appreciated.
You should enter her W 2 forms exactly as issued with no adjustments. When the Boxes showing the 401k contributions add up to 174 over the limit, Ttax should automatically add that 174 to her taxable wage income. You should be able to verify this result fairly easily. It is correct that the W-2 forms should not be corrected by the employer.

This must be done whether the corrective distribution was issued in time or not. The only affect of the corrective distribution is that the earnings will be taxed as wages in the year distributed (2019). Had the excess NOT been distributed, then it would eventually be double taxed somewhere down the road, perhaps after an IRA rollover and IRA RMDs gradually distributed the excess amount.

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HueyLD
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Re: TurboTax Error Re: Excess 401k Deferral

Post by HueyLD » Sat Mar 23, 2019 6:24 pm

The problem is with Turbotax because it would not allow the OP to e file. What Alan said is the way it is supposed to work, but there is a bug in TT and it would not pass the e file verification.

Unless the OP wants to mail in the tax return, he may have to do the workaround with an attached statement. Alternatively, TT may fix the software problem between now and October 15.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 12:27 pm

anoop wrote:
Sat Mar 23, 2019 11:41 am
Sriracha wrote:
Sat Mar 23, 2019 11:30 am
One bump ... hoping for a helping hand.
Have you checked with HR if they will be issuing a new W-2. The update W-2 should show the lowered contribution and higher salary. That is the one TT can then work it. You can also try and go to https://groups.google.com/forum/#!forum ... .moderated for advice. I personally think a w2c will clear it all up.
No, unfortunately, the employer confirmed that it will not be issuing an amended W-2. :?
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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 12:36 pm

Thanks Alan S and HueyLD.

I ended up entering the W-2s exactly as they appear. There is a section for entering excess salary deferrals under the "any other earned income" section of the TT interview process so I used that to be sure the $174 was included in 1040 line 1 (TT did not do it automatically.)

After several conversations with a TT accountant/rep (who at first wanted me to change the W-2s, but I refused), I was told that there's no way to e-file with TT when there are excess salary deferrals to a 401K. Therefore, I printed everything out and filed by certified mail yesterday. Odd sensation. Haven't filed by mail in ages.

Thanks for the assistance.
Don't reach for yield.

TIAX
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Re: TurboTax Error Re: Excess 401k Deferral

Post by TIAX » Tue Mar 26, 2019 12:49 pm

Sriracha wrote:
Tue Mar 26, 2019 12:27 pm
anoop wrote:
Sat Mar 23, 2019 11:41 am
Sriracha wrote:
Sat Mar 23, 2019 11:30 am
One bump ... hoping for a helping hand.
Have you checked with HR if they will be issuing a new W-2. The update W-2 should show the lowered contribution and higher salary. That is the one TT can then work it. You can also try and go to https://groups.google.com/forum/#!forum ... .moderated for advice. I personally think a w2c will clear it all up.
No, unfortunately, the employer confirmed that it will not be issuing an amended W-2. :?
How about initiating a form W-2 complaint with the IRS? Have you considered filing form 4852?
Last edited by TIAX on Tue Mar 26, 2019 1:22 pm, edited 1 time in total.

anoop
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Re: TurboTax Error Re: Excess 401k Deferral

Post by anoop » Tue Mar 26, 2019 12:52 pm

Thanks for the followup.
Sriracha wrote:
Tue Mar 26, 2019 12:36 pm
Haven't filed by mail in ages.
I, on the other hand, have never efiled.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 12:58 pm

TIAX wrote:
Tue Mar 26, 2019 12:49 pm

How about a initiating a form W-2 complaint with the IRS? Have you considered filing form 4852?
I never knew you could initiate the W-2 complaint with the IRS. That might have been a good way to go. I did know about the 4852, but the rep I walked to thought it would be cleaner to go the way I ended up going.

Thanks!
Don't reach for yield.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 12:59 pm

anoop wrote:
Tue Mar 26, 2019 12:52 pm
Thanks for the followup.
Sriracha wrote:
Tue Mar 26, 2019 12:36 pm
Haven't filed by mail in ages.
I, on the other hand, have never efiled.
Maybe next year! :D
Don't reach for yield.

anoop
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Re: TurboTax Error Re: Excess 401k Deferral

Post by anoop » Tue Mar 26, 2019 1:02 pm

Sriracha wrote:
Tue Mar 26, 2019 12:58 pm
TIAX wrote:
Tue Mar 26, 2019 12:49 pm

How about a initiating a form W-2 complaint with the IRS? Have you considered filing form 4852?
I never knew you could initiate the W-2 complaint with the IRS. That might have been a good way to go. I did know about the 4852, but the rep I walked to thought it would be cleaner to go the way I ended up going.

Thanks!
Alan's post above says W-2 did not need to be corrected by the employer.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 1:13 pm

anoop wrote:
Tue Mar 26, 2019 1:02 pm

Alan's post above says W-2 did not need to be corrected by the employer.
Yes, I noted that. The employer said it would have amended the W-2 if it had been contact by it's internal deadline, which we missed by 4 days. Of course, we didn't know we had a problem and knew nothing about the deadline until it was already too late.
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Alan S.
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Alan S. » Tue Mar 26, 2019 1:21 pm

This TTax support issue would appear to be simple at first glance.

However, if a participant made some combination of pre tax and Roth elective deferrals, the plan provisions can determine how the excess is applied OR the plan could allow the participant to make the choice. Any amount returned with earnings by 4/15 must align to the determined allocation of the excess between pre tax and Roth. Of course, excess Roth deferrals are not added to wages because they were included in wages in the first place.

Therefore, the solution is only simple if there was no combination of pre tax and Roth deferrals.

Here is the applicable IRS Reg: https://www.ecfr.gov/cgi-bin/text-idx?S ... 1&rgn=div8

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 2:47 pm

Alan S. wrote:
Tue Mar 26, 2019 1:21 pm
This TTax support issue would appear to be simple at first glance.

However, if a participant made some combination of pre tax and Roth elective deferrals, the plan provisions can determine how the excess is applied OR the plan could allow the participant to make the choice. Any amount returned with earnings by 4/15 must align to the determined allocation of the excess between pre tax and Roth. Of course, excess Roth deferrals are not added to wages because they were included in wages in the first place.

Therefore, the solution is only simple if there was no combination of pre tax and Roth deferrals.

Here is the applicable IRS Reg: https://www.ecfr.gov/cgi-bin/text-idx?S ... 1&rgn=div8
No combo here.

The thing that made this a big PITA is the way that the TT program handled the error (I described it in the OP). At the end of the day, the IRS apparently won't allow tax programs to give users the option to e-file when the W-2s show excess salary deferrals that year. If TT has just said that in the error message then I wouldn't have spent all that wasted time trying to fix the problem; I just would have filed by mail. Instead, TT made it appear like an error that needed to be fixed for tax purposes, not filing purposes. Ugh.
Don't reach for yield.

Itabe
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Itabe » Tue Mar 26, 2019 3:14 pm

Interesting case study with TurboTax. I am in a similar situation this year (small 401k excess deferral). I'll preface this by saying I am not a tax expert, accountant, or offering advice :D

My impression is that as long as you haven't already filed your return, you can list the excess deferral in the tax return for 2018 by entering a dummy 2018 1099R and coding it as an excess deferral taxable in the current year (code 8). Then you just ignore the 1099R that you receive in 2019 with the same distribution coded as P (taxable in the previous year) since you already paid the tax in your 2018 return.

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teen persuasion
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Re: TurboTax Error Re: Excess 401k Deferral

Post by teen persuasion » Tue Mar 26, 2019 3:44 pm

Sriracha wrote:
Tue Mar 26, 2019 2:47 pm
Alan S. wrote:
Tue Mar 26, 2019 1:21 pm
This TTax support issue would appear to be simple at first glance.

However, if a participant made some combination of pre tax and Roth elective deferrals, the plan provisions can determine how the excess is applied OR the plan could allow the participant to make the choice. Any amount returned with earnings by 4/15 must align to the determined allocation of the excess between pre tax and Roth. Of course, excess Roth deferrals are not added to wages because they were included in wages in the first place.

Therefore, the solution is only simple if there was no combination of pre tax and Roth deferrals.

Here is the applicable IRS Reg: https://www.ecfr.gov/cgi-bin/text-idx?S ... 1&rgn=div8
No combo here.

The thing that made this a big PITA is the way that the TT program handled the error (I described it in the OP). At the end of the day, the IRS apparently won't allow tax programs to give users the option to e-file when the W-2s show excess salary deferrals that year. If TT has just said that in the error message then I wouldn't have spent all that wasted time trying to fix the problem; I just would have filed by mail. Instead, TT made it appear like an error that needed to be fixed for tax purposes, not filing purposes. Ugh.
Wait, so the issue is that the IRS won't let you efile with excess salary deferrals, not that TT can't handle it properly?

I've been following all these threads, because DH is also in this boat - changed jobs mid year, went over by $28.70 because of unexpected extra pay.

We're still waiting to hear how his employer is dealing with it - we informed them as early as we discovered it.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 4:02 pm

Itabe wrote:
Tue Mar 26, 2019 3:14 pm
Interesting case study with TurboTax. I am in a similar situation this year (small 401k excess deferral). I'll preface this by saying I am not a tax expert, accountant, or offering advice :D

My impression is that as long as you haven't already filed your return, you can list the excess deferral in the tax return for 2018 by entering a dummy 2018 1099R and coding it as an excess deferral taxable in the current year (code 8). Then you just ignore the 1099R that you receive in 2019 with the same distribution coded as P (taxable in the previous year) since you already paid the tax in your 2018 return.
The TT accountant/rep I spoke to recommended against the 1099R technique.

I was able to get the $174 included in wages for 2018 using the "Excess Salary Deferral" section under TT''s "Any Other Earned Income" section. The TT accountant/rep said later that this was the correct procedure and not to change it. Next year, I'll ignore the 1099R that comes relative to the $174 over-deferral, and I'll just use the 1099R that comes next year relative to the earning on the that amount.
Don't reach for yield.

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Tue Mar 26, 2019 4:13 pm

teen persuasion wrote:
Tue Mar 26, 2019 3:44 pm

Wait, so the issue is that the IRS won't let you efile with excess salary deferrals, not that TT can't handle it properly?

I've been following all these threads, because DH is also in this boat - changed jobs mid year, went over by $28.70 because of unexpected extra pay.

We're still waiting to hear how his employer is dealing with it - we informed them as early as we discovered it.
Yes, that's pretty much it. If you follow the procedure I used (described above) to be sure that the over-deferral amount is in included in wages/income for 2018, then you'll be OK tax-wise but just can't e-file. (There's a sub-issue though regarding when the 401K plan returns the over-deferred amount to you. If you get it back before 4/15 which I did then all is well. If after 4/15 then that's something else. I didn't go into detail with that b/c it didn't effect me, but I believe that you'd end up getting tax twice on the over-deferred amount in that case.)

The whole time TT gave me the impression that the "error" was due to me messing up using the program. Only at the end of my discussions with the TT accountant/rep did he find out from another accountant and then relay to me that TT's message meant that I couldn't e-file, not that I was doing something incorrect with the TT program.
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maxim81
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Re: TurboTax Error Re: Excess 401k Deferral

Post by maxim81 » Wed Mar 27, 2019 3:53 pm

FYI, a fix is planned on being released on 4/5/2019...

https://ttlc.intuit.com/questions/46984 ... ing-e-file

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Sriracha
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Re: TurboTax Error Re: Excess 401k Deferral

Post by Sriracha » Thu Mar 28, 2019 10:51 pm

maxim81 wrote:
Wed Mar 27, 2019 3:53 pm
FYI, a fix is planned on being released on 4/5/2019...

https://ttlc.intuit.com/questions/46984 ... ing-e-file

Thanks. Wish they had told me that during any of my many telephone discussions with them on this issue...
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bogle1
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Re: TurboTax Error Re: Excess 401k Deferral

Post by bogle1 » Fri Apr 05, 2019 5:52 am

Looks like this issue is still not resolved. I installed updates for turbotax2018 on my computer today and still get the error when I try to efile federal. it asks me to check the entry on 1040 line 12b showing the total 401k contribution of $20,274 which is correct as per the two w2s ( excess of $1774) but gives no other option or guideline. anybody fixed this issue and successfully efiled?

bogle1
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Re: TurboTax Error Re: Excess 401k Deferral

Post by bogle1 » Fri Apr 05, 2019 10:50 am

bogle1 wrote:
Fri Apr 05, 2019 5:52 am
Looks like this issue is still not resolved. I installed updates for turbotax2018 on my computer today and still get the error when I try to efile federal. it asks me to check the entry on 1040 line 12b showing the total 401k contribution of $20,274 which is correct as per the two w2s ( excess of $1774) but gives no other option or guideline. anybody fixed this issue and successfully efiled?
also @sriracha filing that you did by mail, is that accepted now?

cashheavy18
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Re: TurboTax Error Re: Excess 401k Deferral

Post by cashheavy18 » Fri Apr 05, 2019 12:29 pm

I received this same error last week. This is the update that was sent by TTax today:

Hi there,

You are receiving this email because you signed up on a TurboTax support article regarding "Excess 401(k) Contribution Preventing e-File".

While the interview has been significantly improved, customers seeing this error will need to paper-file.

If you are using TurboTax Online, updates are applied automatically. If you are using TurboTax Desktop, make sure you download and install the latest update. If you need assistance with updating, please refer to the following support article.

How to Update TurboTax
https://ttlc.intuit.com/questions/1901183

Thanks for your patience.

Sincerely,

The TurboTax Help Team

Can't sign in or don't have an account? Visit TurboTax support.
http://turbotax.intuit.com/support/index.jsp

cashheavy18
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Re: TurboTax Error Re: Excess 401k Deferral

Post by cashheavy18 » Fri Apr 05, 2019 9:14 pm

Update - I just tried going into the online version to file and it accepted the efile (where as a week ago, I was getting an error telling me to paper file). My return is currently marked in progress via an email receipt.

Hoping it will go through smoothly.

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teen persuasion
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Re: TurboTax Error Re: Excess 401k Deferral

Post by teen persuasion » Fri Apr 05, 2019 9:25 pm

Employer finally issued the check returning the excess deferral (minus losses) for DH.

I entered all our W2 info as on the forms, and TT didn't balk at the total deferral in excess of $24,500 for DH. I have not attempted to add the additional taxable income, yet. TT has let me get all the way thru the process right up to filing (haven't done that yet) and everything is "great, let's get on with it! E-file now!"

So, after I review everything to make sure it all looks correct, do I add the amount of the excess deferral, or the smaller returned amount (with losses)? Sounds like it should be the excess deferral, and then , what, the losses go against next year's income?

Will be interesting to see if the addition of the excess deferral as income is what triggers the TT refusal to e-file. What a PITA for $26-28, which will likely make little to no change to our refunds, just to do it correctly.

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teen persuasion
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Re: TurboTax Error Re: Excess 401k Deferral

Post by teen persuasion » Fri Apr 05, 2019 9:31 pm

cashheavy18 wrote:
Fri Apr 05, 2019 9:14 pm
Update - I just tried going into the online version to file and it accepted the efile (where as a week ago, I was getting an error telling me to paper file). My return is currently marked in progress via an email receipt.

Hoping it will go through smoothly.
And how did you add the excess deferral as income?

Hoping it will work!

cashheavy18
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Re: TurboTax Error Re: Excess 401k Deferral

Post by cashheavy18 » Sat Apr 06, 2019 7:41 am

teen persuasion wrote:
Fri Apr 05, 2019 9:31 pm
cashheavy18 wrote:
Fri Apr 05, 2019 9:14 pm
Update - I just tried going into the online version to file and it accepted the efile (where as a week ago, I was getting an error telling me to paper file). My return is currently marked in progress via an email receipt.

Hoping it will go through smoothly.
And how did you add the excess deferral as income?

Hoping it will work!
I received notification that my federal return was accepted this morning via efile. By the time I realized my excess contribution ($13), it was too late to remedy via my employer. So, I submitted as is and will see what happens (I don't know if the TTax calculations already taxed me, since we owed in general).

maxim81
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Re: TurboTax Error Re: Excess 401k Deferral

Post by maxim81 » Sat Apr 06, 2019 6:52 pm

Yeah, it's not working for me either (TT Online).. My employer/401k admin will send a check for $250. I already entered this in TT as "other earned income" but I still get the "you must paper file..".. will try it another day and then paper file!!

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teen persuasion
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Re: TurboTax Error Re: Excess 401k Deferral

Post by teen persuasion » Sun Apr 07, 2019 8:08 pm

maxim81 wrote:
Wed Mar 27, 2019 3:53 pm
FYI, a fix is planned on being released on 4/5/2019...

https://ttlc.intuit.com/questions/46984 ... ing-e-file
I followed the instructions in the link. Two hitches: needed payer id for 401k company, and TT couldn't believe that a loss could occur making the gross payout less than the excess deferral (taxable amount). Finally had to make gross payout the same as taxable amount. Then it let me efile. We will see if it is accepted.

No extra tax due, but lost nearly 50% due to credit phaseouts and table entry boundaries/rounding. :annoyed

uthegirl
Posts: 2
Joined: Fri Apr 05, 2019 3:23 pm

Re: TurboTax Error Re: Excess 401k Deferral

Post by uthegirl » Mon Apr 08, 2019 5:24 pm

teen persuasion wrote:
Sun Apr 07, 2019 8:08 pm
maxim81 wrote:
Wed Mar 27, 2019 3:53 pm
FYI, a fix is planned on being released on 4/5/2019...

https://ttlc.intuit.com/questions/46984 ... ing-e-file
I followed the instructions in the link. Two hitches: needed payer id for 401k company, and TT couldn't believe that a loss could occur making the gross payout less than the excess deferral (taxable amount). Finally had to make gross payout the same as taxable amount. Then it let me efile. We will see if it is accepted.

No extra tax due, but lost nearly 50% due to credit phaseouts and table entry boundaries/rounding. :annoyed
Did you efile through TurboTax Online or did you use one of their download/CD products? Asking because Turbotax Home & Biz is still blocking me from efiling due to the excess contributions reported on the W2 summary sheet.

User avatar
teen persuasion
Posts: 840
Joined: Sun Oct 25, 2015 1:43 pm

Re: TurboTax Error Re: Excess 401k Deferral

Post by teen persuasion » Mon Apr 08, 2019 8:21 pm

uthegirl wrote:
Mon Apr 08, 2019 5:24 pm
teen persuasion wrote:
Sun Apr 07, 2019 8:08 pm
maxim81 wrote:
Wed Mar 27, 2019 3:53 pm
FYI, a fix is planned on being released on 4/5/2019...

https://ttlc.intuit.com/questions/46984 ... ing-e-file
I followed the instructions in the link. Two hitches: needed payer id for 401k company, and TT couldn't believe that a loss could occur making the gross payout less than the excess deferral (taxable amount). Finally had to make gross payout the same as taxable amount. Then it let me efile. We will see if it is accepted.

No extra tax due, but lost nearly 50% due to credit phaseouts and table entry boundaries/rounding. :annoyed
Did you efile through TurboTax Online or did you use one of their download/CD products? Asking because Turbotax Home & Biz is still blocking me from efiling due to the excess contributions reported on the W2 summary sheet.
I used Online, specificallythe free file link from NYS. Received an email that federal was accepted, so far.

maxim81
Posts: 50
Joined: Sat Apr 19, 2008 7:03 pm

Re: TurboTax Error Re: Excess 401k Deferral

Post by maxim81 » Tue Apr 09, 2019 11:27 am

teen persuasion wrote:
Mon Apr 08, 2019 8:21 pm
uthegirl wrote:
Mon Apr 08, 2019 5:24 pm
teen persuasion wrote:
Sun Apr 07, 2019 8:08 pm
maxim81 wrote:
Wed Mar 27, 2019 3:53 pm
FYI, a fix is planned on being released on 4/5/2019...

https://ttlc.intuit.com/questions/46984 ... ing-e-file
I followed the instructions in the link. Two hitches: needed payer id for 401k company, and TT couldn't believe that a loss could occur making the gross payout less than the excess deferral (taxable amount). Finally had to make gross payout the same as taxable amount. Then it let me efile. We will see if it is accepted.

No extra tax due, but lost nearly 50% due to credit phaseouts and table entry boundaries/rounding. :annoyed
Did you efile through TurboTax Online or did you use one of their download/CD products? Asking because Turbotax Home & Biz is still blocking me from efiling due to the excess contributions reported on the W2 summary sheet.
I used Online, specificallythe free file link from NYS. Received an email that federal was accepted, so far.
but you had to change gross payout to same as taxable amount. I don't think you should have to change numbers to e-file..
Per TT's response on the link I posted above, even after you report the excess deferral, you have to paper file

uthegirl
Posts: 2
Joined: Fri Apr 05, 2019 3:23 pm

Re: TurboTax Error Re: Excess 401k Deferral

Post by uthegirl » Tue Apr 09, 2019 1:42 pm

maxim81 wrote:
Tue Apr 09, 2019 11:27 am
teen persuasion wrote:
Mon Apr 08, 2019 8:21 pm
uthegirl wrote:
Mon Apr 08, 2019 5:24 pm
teen persuasion wrote:
Sun Apr 07, 2019 8:08 pm
maxim81 wrote:
Wed Mar 27, 2019 3:53 pm
FYI, a fix is planned on being released on 4/5/2019...

https://ttlc.intuit.com/questions/46984 ... ing-e-file
I followed the instructions in the link. Two hitches: needed payer id for 401k company, and TT couldn't believe that a loss could occur making the gross payout less than the excess deferral (taxable amount). Finally had to make gross payout the same as taxable amount. Then it let me efile. We will see if it is accepted.

No extra tax due, but lost nearly 50% due to credit phaseouts and table entry boundaries/rounding. :annoyed
Did you efile through TurboTax Online or did you use one of their download/CD products? Asking because Turbotax Home & Biz is still blocking me from efiling due to the excess contributions reported on the W2 summary sheet.
I used Online, specificallythe free file link from NYS. Received an email that federal was accepted, so far.
but you had to change gross payout to same as taxable amount. I don't think you should have to change numbers to e-file..
Per TT's response on the link I posted above, even after you report the excess deferral, you have to paper file
Yeah at this point I'm just double checking everything before I print my return to paper file. I'm going to watch our contributions like a hawk this year so as to not have to deal with this again, it's frustrating that one small change could slow down and complicate the process of filing our taxes so much.

User avatar
teen persuasion
Posts: 840
Joined: Sun Oct 25, 2015 1:43 pm

Re: TurboTax Error Re: Excess 401k Deferral

Post by teen persuasion » Tue Apr 09, 2019 2:38 pm

uthegirl wrote:
Tue Apr 09, 2019 1:42 pm
maxim81 wrote:
Tue Apr 09, 2019 11:27 am
teen persuasion wrote:
Mon Apr 08, 2019 8:21 pm
uthegirl wrote:
Mon Apr 08, 2019 5:24 pm
teen persuasion wrote:
Sun Apr 07, 2019 8:08 pm


I followed the instructions in the link. Two hitches: needed payer id for 401k company, and TT couldn't believe that a loss could occur making the gross payout less than the excess deferral (taxable amount). Finally had to make gross payout the same as taxable amount. Then it let me efile. We will see if it is accepted.

No extra tax due, but lost nearly 50% due to credit phaseouts and table entry boundaries/rounding. :annoyed
Did you efile through TurboTax Online or did you use one of their download/CD products? Asking because Turbotax Home & Biz is still blocking me from efiling due to the excess contributions reported on the W2 summary sheet.
I used Online, specificallythe free file link from NYS. Received an email that federal was accepted, so far.
but you had to change gross payout to same as taxable amount. I don't think you should have to change numbers to e-file..
Per TT's response on the link I posted above, even after you report the excess deferral, you have to paper file
Yeah at this point I'm just double checking everything before I print my return to paper file. I'm going to watch our contributions like a hawk this year so as to not have to deal with this again, it's frustrating that one small change could slow down and complicate the process of filing our taxes so much.
I REALLY wanted to avoid snail mail if at all possible. Our mail service has become completely unreliable, so everything important goes electronic if possible. My employer has had an entire payroll go AWOL for 3 weeks (long enough that they cancelled checks and reissued, before the originals resurfaced), vendor payments disappear, regularly receive mail for other addresses, we've had personal mail fail to appear. We've signed up for the email prescan of each day's mail from USPS, but the issue is apparently in the distribution center several counties away (no problems before when mail was sorted locally).

I followed the rules as much as possible. TT wouldn't have let me complete my taxes without changing the gross payout number, period, and it's certainly not a change in my favor tax wise, it was obviously an edge condition they neglected to handle properly in coding it. After the change, no notices that I had to paper file, efile went thru.

So I deliberately chose the lesser of 2 evils in my eyes: alter a number that the faulty coding refused to accept (which was, if anything, worse for me tax wise, at best a rounding error), or paper file and pray it didn't disappear in the mail this close to the deadline.

User avatar
teen persuasion
Posts: 840
Joined: Sun Oct 25, 2015 1:43 pm

Re: TurboTax Error Re: Excess 401k Deferral

Post by teen persuasion » Tue Apr 09, 2019 3:06 pm

Forgot about another part of the puzzle: NYS requirements to efile.

I'd happily use IRS fillable forms and skip the interview style SW, but NY ditched its attempts to roll their version out, and rely completely on free file commercial SW. In the past, I seem to remember the rule was essentially if you efile federal, you must also efile state. This year I noticed that it said if you use SW, you must efile.

So if I used TT, I couldn't print and mail and be in compliance with NYS.

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