Reply To: 401K and rollover IRA both reporting same excess contribution in different years

Home Fairmark Forum Retirement Savings and Benefits 401K and rollover IRA both reporting same excess contribution in different years Reply To: 401K and rollover IRA both reporting same excess contribution in different years

#27502
deedee8712
Participant

Thanks again for your additional response. I understand your last paragraph; however, it is inconsistent with the corrected 2020 Form 1099-R from the original 401K provider and also inconsistent with the only 2020 W-2. Since the income totals are the same, I’m going to stick with using the data from the documents I have. If I do get audited, I can explain why I reported what I did and just change the line numbers for income without changing the total income reported.

While researching this topic, I realized that I reported income in the wrong tax year for a similar excess contribution 12 years earlier. At the time, I did not realize the meaning of code 1P in Box 7 of Form 1099-R. I’m surprised neither the tax software nor the IRS noticed it. I probably paid the same tax rate in both years so it was a wash for the IRS.

  • This reply was modified 4 months, 3 weeks ago by deedee8712.