Carl
Level 15

Retirement tax questions

Both employer and employee contributions to your employer sponsored retirement account are not included in box 1 of your W-2 and is therefor not taxed. The amount contributed is shown in box 12 with whatever the appropriate letter or number code is for your specific type of plan.So you don't get a "deduction" for this per-se, since you can't deduct that which you are not taxed on in the first place.

However, there is a "contribution credit" you may (or may not) qualify for depending on the plan type as indicated by the number or letter code in box 12 of the W-2. That's dealt with under the Deductions & Credits tab under the Retirement & Investments heading in the Retirement Savings Contributions Credit section of the program, when you get to that point in the program.