You'll need to sign in or create an account to connect with an expert.
If your Roth IRA contribution is entered on the W-2 in box 12, then you do not enter that contribution anywhere else on the tax return.
That's complicated. What is the code in box 12 of your W-2?
The usual answer for this is that employer qualified plans are NOT IRAs, even though they have a similar purpose. If you have a Roth account in a 403b, or a Roth account in a 401k, that is not an IRA, and it is only reported on your W-2 (code AA or BB).
However, there is something new called a Payroll Deduction IRA. This is where your employer contributes directly to your IRA, instead of setting up a qualified plan (which can have a lot of paperwork).
https://www.irs.gov/retirement-plans/plan-sponsor/payroll-deduction-ira
This is the same as a private IRA, except some of the money comes from your employer. The contributions follow the IRA rules and limits (not the 401k rules) and are limited by income and filing status. The contributions will not officially be reported on the W-2 (they could be in box 14, which is for notes and comments, but are not in box 12). You need to report them as contributions.
So it depends on whether you have your own IRA that your employer pays in to via the PDI, or whether you have a qualified plan that you called by the wrong name.
What you have through your employer is almost certainly not a Roth IRA. Amounts reported with code AA, BB, or EE in box 12 of your W-2 s a designated Roth account in a qualified employer plan (401(k) , 403(b), 457(b) or the federal TSP). Nothing about amounts reported with these codes is to be entered under Deduction & Credits.
(Opus 17, Payroll Deduction Roth IRAs, while uncommon, have been around as long as there have been Roth IRAs.)
Is my employer legally obligated to report my voluntary 401k Roth contributions on my W2? Is there any harm with the IRS if they are not listed?
If the employer withheld funds from your pay and deposited those funds into the designated Roth account in the 401(k), which can only be done pursuant to your deferral election, the employer is required to report the amount with code AA in box 12 of your W-2.
Certainly filing inaccurate forms with the IRS is problematic. It also creates a real possibility of the employee filing in inaccurate tax return.
Yep! I’m pretty frustrated with my employer. They told me it’s on my paystubs and verified when I log into my retirement plan so they can leave box 12 blank. My wife has it listed in box 12 with code BB. Mine is blank. If I send the the instructions from the IRS website they will get pissed at me for telling them how to do their job. This is an employer that has almost 1000 employees. It’s baffling.
Code BB means contributions to the designated Roth account in a 403(b) rather than in a 401(k), but it's the same idea with the same reporting requirements.
Note that if the contributions are to a payroll-deduction Roth IRA, not to a designated Roth account in a 401(k) as you stated, these would not be shown on your W-2. With a payroll-deduction Roth IRA, the employer is simply depositing your own personal Roth IRA contributions on your behalf and it is not really an employer-provided retirement plan.
https://www.irs.gov/retirement-plans/plan-sponsor/payroll-deduction-ira
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
auyeungn
New Member
donnaj427
New Member
megank1
Level 2
Pavel Hu
New Member
TomekHi
New Member