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Roth IRA contributions directly done on w2 form from emplyer. Do I report this on taxes

Roth IRA contributions directly done on w2 form from emplyer. how I report this on taxes?
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3 Replies
MaryK4
Employee Tax Expert

Roth IRA contributions directly done on w2 form from emplyer. Do I report this on taxes

No, if you make Roth 401k contributions reported on your W2, you do not have to report on your tax return.  

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Roth IRA contributions directly done on w2 form from emplyer. Do I report this on taxes

Almost never, but we have to be extremely careful about definitions.

 

A qualified workplace plan (401k, 403b, something else) is NOT an IRA.  An IRA is a private arrangement between you and a bank.  Qualified plans are sponsored by your employer and held at a bank or broker in trust for the employees.   Qualified workplace plans are only reported on your W-2 using special codes in box 12 and they are NOT separately reported by you.

 

However, there is another type of retirement plan called a "payroll deduction IRA."  With this plan (intended for small businesses), you have an IRA at a bank or broker, and your employer makes contributions for you automatically from payroll.  This type of plan is an IRA, is not a qualified workplace plan, and is NOT reported on your W-2.  If you and your employer participate in a payroll deduction IRA, then you do report the contributions as if you made them yourself. 

dmertz
Level 15

Roth IRA contributions directly done on w2 form from emplyer. Do I report this on taxes

Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.

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