How to Report the Removal of Excess 401k Contributions
How do you properly report the removal of excess 401k contributions? Due to changing from one employer to another during the year, a client over contributed by $1250 for 2017. Once realized, the excess along with $14.87 in earning were removed in January 2018. No 1099-R has been issued for 2017. What should be reported for 2017 and where?
The plan administrator said a 1099-R would only be issued for tax year 2018. One 1099-R with code P for the $1250, and a second one for the earnings ($14.87).