401k excess contribution refund


H

HW \Skip\ Weldon

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
 
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P

Phil Marti

HW "Skip" Weldon said:
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.
 
Last edited by a moderator:
H

HW \Skip\ Weldon

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?
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
 
Last edited by a moderator:
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H

HW \Skip\ Weldon

In early '05 my wife received a partial refund of '04 401k
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?
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
 
Last edited by a moderator:

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