Reporting IRA Contributions on 1040

[tccpg288]

If I have an IRA  contribution on my W2 (Box 12 Code AA), is it subtracted from Box 1 wage amount? Where should I expect to see it on my 1040?

Also, am I eligible to contribute to a Roth IRA separately, not through my employer, and if so what are the 1040 reporting requirements?

These items are both for 2018.

[DDollar · Accepted solution]

No, your Designated Roth Contribution (Box 12 Code AA) is not reflected in box 1 of your W-2 - it is an after tax contribution. It does not reduce your taxable income.  You will not see it on your Form 1040.  You may be eligible to contribute to a Roth IRA.  Here are the Roth Income Limits for 2019 contributions:

• Single or head of household: You must earn less than $122,000 ($120,000 in 2018) to fully contribute to a Roth IRA
• Married filing jointly or a qualified widow(er): You must earn less than $193,000 ($189,000 in 2018) to fully contribute to a Roth IRA
• Married filing separately: You must earn less than $10,000 to fully contribute to a Roth IRA. (Note: Those married filing separately can use the limits for single people if they have not lived with their spouse in the past year).

If you are eligible, there are no reporting requirements for a Roth IRA, as they are after tax and do not impact your tax return.

[dmertz]

And to be clear, the account to which the code AA amount was contributed is NOT an IRA.  It's the Roth account in your 401(k) plan.

[VolvoGirl]

Code AA is to a ROTH Plan.  You only enter it from the W2.  They are not deductible now but when you take it out it and the earnings come out tax free.