401k excess contribution refund

#2 01-28-2006, 03:40 AM

- quote -

> > In early '05 my wife received a partial refund of '04 401k
> > contributions because her company failed the
> > anti-discrimination test.
> > > Per instructions from the custodian (Fidelity) we split up
> > the refund and included it on lines 7 and 21 on our '04
> > return. We also copied the custodian's instructions and
> > included it with the return.
> > > Now we have received a 1099 showing that amount as '05 income.

> Just checking to make sure. Have you checked whether the
> code on the 2005 1099-R indicates that it should be reported
> on the 2004 return?

> > How should that be handled on our '05 return?

> My step one would be to figure out which year it really
> should be reported in.

Thanks for the reply. The 1099-R is for 2005. The
instructions from Fidelity received with the check indicated
we were to put it on 2004 return, which we did.

Now I am confused as to how to handle the 2005 1099, as
taxes were paid in 2004 (included income on 2004 return.)
-------------------

***It's so fun to answer when egg is on my face. <grin
Box 7 clearly says "P", which is an 04 taxable event.

Thanks anyway. I now know what to do. Next time I won't be
such a guy and read the damned directions.

-HW "Skip" Weldon
Columbia, SC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#1 01-28-2006, 03:39 AM

"Phil Marti" <prm20871[at]verizon.net> wrote:

- quote -

> > In early '05 my wife received a partial refund of '04 401k
> > contributions because her company failed the
> > anti-discrimination test.
> > > Per instructions from the custodian (Fidelity) we split up
> > the refund and included it on lines 7 and 21 on our '04
> > return. We also copied the custodian's instructions and
> > included it with the return.
> > > Now we have received a 1099 showing that amount as '05 income.

> Just checking to make sure. Have you checked whether the
> code on the 2005 1099-R indicates that it should be reported
> on the 2004 return?

> > How should that be handled on our '05 return?

> My step one would be to figure out which year it really
> should be reported in.

Thanks for the reply. The 1099-R is for 2005. The
instructions from Fidelity received with the check indicated
we were to put it on 2004 return, which we did.

Now I am confused as to how to handle the 2005 1099, as
taxes were paid in 2004 (included income on 2004 return.)

-HW "Skip" Weldon
Columbia, SC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

01-27-2006, 12:31 AM

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote:

- quote -

> In early '05 my wife received a partial refund of '04 401k
> contributions because her company failed the
> anti-discrimination test.
> Per instructions from the custodian (Fidelity) we split up
> the refund and included it on lines 7 and 21 on our '04
> return. We also copied the custodian's instructions and
> included it with the return.
> Now we have received a 1099 showing that amount as '05 income.

Just checking to make sure. Have you checked whether the
code on the 2005 1099-R indicates that it should be reported
on the 2004 return?

- quote -

> How should that be handled on our '05 return?

My step one would be to figure out which year it really
should be reported in.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#-1 01-25-2006, 10:43 PM

In early '05 my wife received a partial refund of '04 401k
contributions because her company failed the
anti-discrimination test.

Per instructions from the custodian (Fidelity) we split up
the refund and included it on lines 7 and 21 on our '04
return. We also copied the custodian's instructions and
included it with the return.

Now we have received a 1099 showing that amount as '05 income.

How should that be handled on our '05 return?

-HW "Skip" Weldon
Columbia, SC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Similar Threads
Thread	Forum	Replies	Last Post
Refund of "excess" 401(k) contribution due to HCE tag spoca2005@yahoo.com: In calendar year 2004, I contributed $13,000 (max allowed by IRS) to my employer-sponsored 401(k). The company match was a modest 30% of the first...	Taxes	3	01-14-2006 03:06 AM
late notification of 401k excess contribution after rollover to IRA Levi Ahlberg: I've got a 401k excess contribution question that I haven't seen posted to this group before. I've just been notified that my former employer...	Taxes	1	10-28-2005 04:13 AM
Excess Roth Contribution Charlie K: I calculate I'm going to have about $250 in an excess contribution for 2004. Vanguard forms say they'll calculate the earnings and send the amount...	Taxes	9	12-31-2004 03:08 PM
IRA Excess contribution Allan: I have just recently discovered (on my own) that in 1999, I made an excess contribution to my IRA. The excess amount is only by $500, but from...	Taxes	2	04-26-2004 02:49 AM

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode