ETax847 Posted March 3, 2016 Report Share Posted March 3, 2016 Client over her 401k in 2014. She received a 1099R for the excess contributions one with code P and one with code BP. In ATX, upon entering these codes it removes the contribution as being taxable. Any idea as to why this would be or how to handle this? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 3, 2016 Author Report Share Posted March 3, 2016 My thought is that the excess contribution would need to be included as income on an amended 2014 return Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 4, 2016 Report Share Posted March 4, 2016 What year is the 1099-R for? Did your client correctly roll it over? Quote Link to comment Share on other sites More sharing options...
ETax847 Posted March 4, 2016 Author Report Share Posted March 4, 2016 its for 2015, withdrawing the excess 401k contribution from 2014. Excess contribution was withdrawn in 2015. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 4, 2016 Report Share Posted March 4, 2016 For matching purposes, I would leave 2014 alone and report it in 2015. I am not sure under what circumstances a roll over will cause excess contribution if we are talking 401k to 401k. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted March 4, 2016 Report Share Posted March 4, 2016 Determining which year to report the return of the excess depends on when it was withdrawn, before April 15th or after makes a difference. Please see this IRS page (safe link direct to IRS site), about mid-way down the page starting at "Treatment of Excess Deferrals". Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 4, 2016 Report Share Posted March 4, 2016 Also makes a difference WHY. If a highly compensated employee after the 2014 plan was tested is then issued a withdrawal on a 2015 form with certain codes (P?) it was really part of his 2014 compensation and you need to amend 2014. Check the instructions for each code. 1 Quote Link to comment Share on other sites More sharing options...
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