Excess 401k deferral: which account?

Asked by: Cynthia Herrera

How do I report excess deferral?

You should report the full amount of your excess deferrals on line 7 of your individual tax return (Form 1040) for 2021, and you should report the allocable loss as a bracketed amount on the “Other Income” line (line 21) of your Form .

How do I report excess 401k contributions 2021?

How Do I Report Excess 401k Contributions? If you accidentally added excessive contributions to your 401k, you must include it as reported income on your taxes, and use form 1099-R to report it to the IRS.

What if I have a 401 K excess deferral?

Unless timely distributed, excess deferrals are (1) included in a participant’s taxable income for the year contributed, and (2) taxed a second time when the deferrals are ultimately distributed from the plan.