401(a)

Forum|Forum|3 years ago
January 13, 2023
2 replies
9 views

I am new to payroll, and I have a W-2 issue. We have a CalPERS PEPRA retirement plan 401(a). Last year, one of my employee tax persons stated that 401 (a) should be deducted from the wages on the W-2 and in box 12. According to IRS and another tax person I contacted for this year W-2's, the 401 (a) should be in Box 14 on the W-2 and is not deducted from wages. I have the 401 (a) in our payroll item list under deductions as NONE (as QB does not have 401 (a) listed), and when I issued my W-2's for employees this year, the 401 (a) contributions did not show up in any box on the W-2. What is correct?

Not A Product Question

Anonymous_

Level 15

I will page @dmertz. Check back.

dmertz

Level 15

I'm not particularly familiar with 401(a) plans in general and CalPERS in particular. The following investopedia webpage on 401(a) plans in general suggests that it's the employer's choice whether contributions are pre-tax or after tax, but I don't know if that would be applicable to CalPERS. If made pre-tax they would be excluded from box 1 of the W-2. If made after tax they would be included in box 1 of the W-2 and would need to be tracked by the plan as after-tax-basis that would not be taxable when later distributed.

https://www.investopedia.com/terms/1/401a-plan.asp