Tax Law (Questions About Taxes)/Excess 403b contribution


My wife made a $2250 excess contribution to her 403b for 2012 (she went from a 10 month contract to a 12 month contract and deductions were not adjusted down properly). I am using the HR Block tax software, and the software identified the issue and will include the $2250 in earnings for the year. I also contacted her plan administrator (Vanguard) and filled out the proper forms to have the excess $2250 returned to us. I understand that the earnings on the $2250 are also part of the solution, but am not sure how to handle that. Vanguard told me they will send me the information about the earnings to report them, but do I include those earnings for 2012? or 2013? Where exactly would I enter them? Thanks!


Since those excess 403b contributions should never have been made, it is a 2012 issue. I would ask the employer for a corrected W-2 with the corrected amounts in Boxes, 1,3,5 and 12 if possible.

The $2250 being returned to you is not income in 2013 - it is reported as additional income in 2012, which the software did properly. The critical issue is that the IRS is informed of the correction.

An excellent paper on it here:

Take care,  

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Bruce W. Tyler, EA


I can answer questions with regard to the following: Preparation/Tax Law regarding Individual Income Tax (IRS and California), Audit Representation/IRS Procedures of personal and corporate income tax including appeals, IRS Collection procedures for individuals, partnerships and corporations, Offers-in-Compromise, Installment Payment Plans, Penalty Abatement,Income from Cancellation of Debt. Heavy experience with Public Safety (i.e. Firefighters, Police Officers, Correctional Officers, etc) as well as medical industry.


21 years in tax preparation and representation

National Association of Enrolled Agents

4 years of accounting at Woodbury University/UCLA Extension

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