Does it also mean that all the box12 amounts are nontaxable and not included in box1, 3 and 5 of my W-2?
Is 401K included in Box1? Can it be deducted?
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Your employer should have already have included or excluded from the appropriate boxes on your W-2 any amounts listed in box 12. Specifically,
Employee deferrals to a 401(k) (code D) are excluded from box 1 but must be included in boxes 3 (up to the SS wage base) and 5. Deferrals to a Roth 401(k) (code AA) are included in box 1, 3 (up to the SS wage base) and 5.
See the instructions for Form W-2: https://www.irs.gov/pub/irs-pdf/iw2w3_15.pdf
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