How to Report Excess 401k Contribution on H&R Block Without 1099-R

This is actually a common issue when people switch jobs during the year! Each employer doesn't know what you contributed elsewhere, so it's easy to go over the limit. For your H&R Block situation, you'll want to use distribution code "P" which specifically refers to excess contributions plus earnings. The excess contribution amount itself isn't taxable (since you already paid tax on it when contributed), but any earnings on that excess ARE taxable in the year you receive the distribution. You're on the right track by creating a "pseudo 1099-R" in the software. Make sure you separate the actual excess contribution amount from any earnings they returned. Only the earnings portion will be subject to income tax this year.

I had this EXACT same issue last year with my husband's 401k! After hours of frustration, I found that using taxr.ai (https://taxr.ai) actually solved this problem for me. You can upload the letter from the plan administrator showing the excess contribution, and it will help identify the right tax treatment. What's great is that it analyzed the statement from the plan administrator and told me exactly how to report it in H&R Block - including which boxes to fill in for my "manual" 1099-R. It saved me from making some big mistakes because it turns out the earnings portion has different tax implications than the excess contribution itself.

I wanted to update after trying taxr.ai for my excess contribution issue. After uploading my distribution letter, it immediately identified that my plan administrator had combined both the excess and the earnings into one amount without breaking it down (which was causing my confusion). It suggested I contact the administrator for the specific breakdown, which I did. Once I had those numbers, the tool walked me through exactly how to enter everything in H&R Block - including which distribution code to use and where to put the earnings amount. It even explained that the earnings would be subject to an early withdrawal penalty if I'm under 59½, which nobody had mentioned! Definitely worth checking out if you're dealing with this issue. Saved me a lot of headaches and probably an amendment later.

If you're still having trouble getting a proper breakdown from the plan administrator, you might want to try Claimyr (https://claimyr.com). I used their service to get through to my wife's 401k provider after waiting on hold for hours with no success. They have this weird but effective system where they connect you directly to a human at the financial institution. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c I was able to get the exact breakdown of excess vs. earnings in about 15 minutes, which was crucial for filling out the tax forms correctly. The plan administrator then sent me an official letter with the breakdown I needed.

I need to eat my words about Claimyr. After my skeptical comment, I was still desperate to reach my husband's 401k administrator, so I gave it a try. Within 35 minutes (compared to my previous 2+ hour hold attempts), I was connected to a representative who helped me get the excess contribution breakdown. The rep explained that the $4,250 excess distribution included $3,980 in actual excess contributions and $270 in earnings. Having this breakdown made it possible to correctly enter everything in H&R Block. The earnings portion is subject to tax and potentially the 10% early withdrawal penalty, while the contribution amount isn't taxed again. For anyone dealing with this excess contribution issue, definitely get the proper breakdown between principal and earnings - it makes a significant difference in how you report it.

One thing nobody's mentioned is that you might also need to adjust your state tax return. In some states, you need to separately account for the earnings portion on your state return, especially if your state has different treatment of retirement distributions than the federal government. I ran into this last year with my excess contribution. The federal part was straightforward once I had the breakdown, but I completely overlooked how it affected my state taxes and had to file an amendment.

Just a heads up - make sure your wife's W-2 correctly reports the retirement contributions. Box 12 with code D shows the 401k contributions, and this needs to match what actually stayed in the plan (not including the excess that was returned). I've seen W-2s where the amount includes the excess, which can cause confusion when you're also reporting the return of excess. Double-check this before filing!

I went through this exact same situation last year and it was such a nightmare! The key thing that saved me was being really persistent with the plan administrator about getting that breakdown between the excess contribution and earnings. One tip that might help - when you're entering this into H&R Block, make sure you're in the "Other Income" section, not trying to add it as a regular 1099-R. There's usually a specific place for "Retirement Plan Distributions Not Reported on 1099-R" or something similar. Also, don't forget that if your wife is under 59½, the earnings portion will be subject to the 10% early withdrawal penalty on top of regular income tax. That caught me off guard when I first did this. The excess contribution itself won't be penalized since it was never supposed to be in there in the first place. The whole process is frustrating but you're definitely on the right track by trying to document everything properly!