Tax reporting of excess contributions

[Guest susa]

An HCE received distribution due to ADP failure for year 2002. The distribution was paid before 3/15/03. She is doing her taxes for 2002 and wants to include the distribution. I've found in 1040 instructions that you include it on Line 7 but she won't have a 1099 (with code P) until January 2004. Is that a problem? Does she have to wait for the 1099 and then do amended 1040? Thanks in advance.

[Mike Preston]

She does not need to wait and file an amended return. The "code" that will be on the 1099 will say that it was taxable in 2002 (you are correct that if the instructions aren't changed, the code will be "P").

Note that if the amount refunded was less than $100, it will be taxable in the year received.