Corrective Distributions

Definition: If you contribute more money to your 401k or IRA than you were supposed to, the plan administrator will send you a check for your excess contributions. These are called corrective distributions, and they are reported on Form 1099-R. Report excess contributions from a 401k plan on Form 1040 Line 7 (wages). Report excess contributions from an IRA plan on Form 1040 Line 15.