@williamthe5thc
Enter your W-2 exactly as is with no changes.
A 401(k) and an IRA are completely different kinds of accounts. Although they have the same general purpose, they are controlled by different sections of the tax law, and they have very different rules on withdrawals, contributions, and contribution limits.
You can reduce your taxable income for 2021 by contributing to a traditional deductible IRA, if you are within the income limits. If you don’t currently have an IRA, you can open one at a most banks or brokerage houses. Your spouse can also contribute to an IRA depending on their income and whether they are covered by a retirement plan at work. Even if your spouse does not work, they can contribute to an IRA by relying on your income, as long as you file a joint return. (Remember that IRAs are individual accounts, there is no such thing as a joint IRA or a joint 401(k). Each account belongs to one specific individual.)
To reduce your taxable income for 2022, change your payroll contributions to make more contributions to a traditional pretax 401(k) and less contributions to the designated Roth option 401(k).
