1099R with Code 8-Excess contribution from 2011

[Gail in Virginia]

I know that I knew how this worked once upon a time. But not tonight. New client. Has 2012 form 1099R showing around 1700 distribution from 401(k). Code is 8 - excess contribution and earnings from 2011. I understand that the plan failed its testing and he had to get part of his money back but I cannot for the life of me remember what to do with this. Since it is 2011 do I have to amend last year's return? I put it in this year's information but it does not seem to flow through to the front page of the 1040.

I can't wait for April 15.

[Guest Taxed]

That is an excess contribution for the plan year 2011 when the 401(k) pailed ADP/ACP testing and the actual distribution was made after the close of the plan year in 2012. So it is taxable in 2012. There are no penalties asociated with it. Just have to make sure that it shows on line # for taxable portion of pension/annuities on 1040 front page.

No amendement of the taxpayers 2011 return is required.

[joanmcq]

And it goes to line 7 of the 1040, not 16. I've lost time on this one for one of my clients in the past. This year I finally remembered where the amount ended up!

[jklcpa]

And it goes to line 7 of the 1040, not 16. I've lost time on this one for one of my clients in the past. This year I finally remembered where the amount ended up!

Joan, you aren't the only one. The first one I did, I was also looking for it on the pension line until I looked up the proper presentation.

[Gail in Virginia]

Thank you! I new it had to be somewhere, but I just could not for the life of me remember where!