pmacduff Posted January 15, 2018 Share Posted January 15, 2018 Participant is slightly ($18.00) over 402g for 2017, refund is processed on 01/03/2018. I know the participant will receive a 1099-R form next January from the vendor for th excess. My question is in regard to the 2017 W-2 form - will that show $24,018 or $24,000? Since there is no line on the 1040 return for the actual deferral amount I wasn't sure how that works. I've never seen the actual W-2 form for someone who exceeded the limit. I vaguely recall reading about someone doing their taxes on Turbo tax years ago and the software would not let them enter the higher amount, it gave them an error message. Just curious more than anything..... Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted January 16, 2018 Share Posted January 16, 2018 The W-2 will show the deferral of $24,018 if that is the amount that was actually deferred. The participant will have to increase line 7 of his 1040 by the $18.00. Any earnings on the excess will be taxed in 2018 (the year of the corrective distribution). Good Luck! CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
Tom Poje Posted January 16, 2018 Share Posted January 16, 2018 ETA is correct unless it was a ROTH deferral The instructions on the 1040 are as follows: Excess salary deferrals. The amount deferred should be shown in box 12 of your Form W-2, and the “Retirement plan” box in box 13 should be checked. If the total amount you (or your spouse if filing jointly) deferred for 2016 under all plans was more than $18,000 (excluding catch-up contributions as explained later), include the excess on line 7. This limit is (a) $12,500 if you have only SIMPLE plans, or (b) $21,000 for section 403(b) plans if you qualify for the 15-year rule in Pub. 571. Although designated Roth contributions are subject to this limit, do not include the excess attributable to such contributions on line 7. They are already included as income in box 1 of your Form W-2. Corrective distributions from a retirement plan shown on Form 1099-R of excess salary deferrals and excess contributions (plus earnings). But do not include distributions from an IRA* on line 7. Instead, report distributions from an IRA on lines 15a and 15b. *This includes a Roth, SEP, or SIMPLE IRA. Link to comment Share on other sites More sharing options...
pmacduff Posted January 16, 2018 Author Share Posted January 16, 2018 It was pre-tax. Thank you both for your insights! Link to comment Share on other sites More sharing options...
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