Form 1099-R - Excess 401k contribution

[Guest jkr]

My wife received a 1099-R for excess 401k contribution. The 1099-R shows 2001 as the year with a "P" distribution code(I assume this means it is for 2000). Where do I include this income amount for my 2001 taxes? I used Turbo Tax and entered this amount and code, and it did nothing to my taxes. Do I need to file some type of amendment for 2000? Any help is appreciated...

[pmacduff]

The "P" code means "previous" and was, in fact, taxable in the 2000 year, should've been included on your 2000 return. The 1099-R the following year as you received it is informational for your records. As far as amending your 2000 return, I'm a pension person, not familiar with personal taxes, so will have to defer that part of your question. However, my assumption is that you would have to file an amened 2000 return...others care to comment?

[Archimage]

That is correct. You will have to file an amended return. Since you will probably have to pay additional taxes on this amount, the IRS will probably require you to pay interest on top of the amount you owe. The rate is the federal short term rate plus 3%. The rate is adjusted quarterly and is compounded daily.