Where to mention forfeited 401k contribution made by employer?

pcb
pcb Member Posts: 1 Newcomer
edited March 22 in Filing my taxes

I resigned my previous employer in middle of the year, and they forfeited my few thousands of 401k contribution made by the employer as per their policy. Thereafter employer bank sent me distribution statement mentioning that money as forfeited money. They did not send any 1099R and not going to send. Where to indicate this forfeited money in tax filing. Any guidance is appreciated.

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Answers

  • WrenD
    WrenD FreeTaxUSA Agent Posts: 30

    Hi pcb!

    Great question.

    If 401(k) contributions were forfeited because you left your job before being fully vested, there’s actually nothing you need to enter on your tax return. These amounts were employer contributions that you never owned or received, so they’re not considered taxable income and don’t need to be reported.

    Unless you received a distribution or a tax form like a 1099-R related to those forfeited funds, you can safely leave them off your return.

    Hope this helps clarify things!

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