I have 401K and Roth IRA offered through my work. I contributed 3,046 to 401k. However, I just changed my contribution to a Roth IRA. How do I file?

[chadfedie]

I contributed some of my paycheck to a 401k for most of the year, stopped and then when I picked back up I changed to only contributing to a Roth IRA but now its 2024

[VolvoGirl]

Just enter the 2023 W2.  You don't report any 2024 contributions.    Nothing special to do.  It's all on the W2.  

[chadfedie]

So since it's offered through my work, I don't need to do any special for this section? I contributed 10% to the 401K plan until May 2023, stopped until Jan 2024. Now, I just changed contribution to 5% for the Roth IRA they offer.

[Opus 17]

Please clarify whether you have a Roth account in the 401k, or a true Roth IRA.  It is most common for an employer to have a 401k, which can have both traditional (pre-tax) and Roth (after tax) options.  Funds are held at an institution chosen by the employer.

There is a provision in one of the SECURE acts that creates a new simple option called a payroll deduction IRA, where the employee sets up a personal IRA account at a bank or broker, and the employer makes an after-tax payroll deduction and sends it to the IRA on behalf of the employer.  It would be unusual for an employer to offer both a 401k and a payroll deduction IRA.

https://www.irs.gov/retirement-plans/plan-sponsor/payroll-deduction-ira

An IRA (traditional or Roth) is not the same as a 401k (pretax or Roth) and the rules and contribution limits are very different.

If you only made contributions to the employer's plan, then everything you need to know will be on your W-2.  Just enter the W-2 as-is.  Don't enter any IRA contributions because you didn't make any.

If you set up your own IRA and made after-tax contributions via a "payroll deduction IRA", then the contributions won't be on your W-2 and you report them yourself. 

[VolvoGirl]

No.  What section?  In Deductions?  No.  A 401K only is entered from the W2 nowhere else.  It has already been deducted from your wages in box 1 and you can't deduct it again.  Notice that box 1 is less than boxes 3&5.  Anything you contributed in 2024 will be on your 2024 W2, next year.  

But I'm not sure if you can contribute to a IRA or ROTH IRA at work.  Could it be a ROTH 401K?  

[chadfedie]

It's through American Trust. The two options it lets me contribute to shows, "Pre Tax" or "Roth". I contributed to Pre Tax from 1/1/2023-May-ish 2023, stopped for personal reasons. Then in January, I changed my contribution percentage to the "Roth". Does this screenshot help?

 

[Opus 17]

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@chadfedie wrote:

It's through American Trust. The two options it lets me contribute to shows, "Pre Tax" or "Roth". I contributed to Pre Tax from 1/1/2023-May-ish 2023, stopped for personal reasons. Then in January, I changed my contribution percentage to the "Roth". Does this screenshot help?

 

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You have a 401k with a pre-tax and Roth option.  You do not have a separate IRA.  Enter your W-2 only.

Code D means contributions to your 401k.  They have already been removed from your W-2 box 1 taxable wages, so you don't pay tax on the contributions (that's your tax deduction, they were taken out of your paycheck before taxes).  

Since you only started making Roth contributions in 2024, they will be reported on your 2024 W-2 with a different code. 

[chadfedie]

Copy that! Thank you for dumbing it down for me