The W-2 must be recorded exactly as it is printed in your tax return. Remember the IRS gets a duplicate copy of that W-2. I understand, you may not want the credit but it's yours and whether you take take it or not the IRS will assume you were entitled to it.
This code means that you put money into a tax deferred account and when it is removed you must pay tax on it at that point. For a smoother tax situation you should keep the credit because you will pay the tax on distribution of the funds. Even if you keep records the IRS will follow protocol for the transaction now and later.
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