I have a situation on my 2018 W2. Have D17 and also D. Should I ignore D17 on my 2018 tax form. These are in Box 12b - 401K

[Spino]

[mention://77326794 @TurboTaxBillMc] I wonder if you could find any basis for why the employer would do this (and it would be correct.) It seems like our taxpayer is going to be frustrated either way. One solution might be to report the excess contribution as listed on the W2, manually deduct the 2017 contribution, and then indicate in a statement why it is being deducted and declare that it will be entered as a correction on the 2017 return if that is what is needed. I think the IRS would take the position that it is the taxpayer's responsibility to file correctly, even if the employer has wrongly reported. Alternatively, the D 17 contribution could be coded as "other." Then it would not carry over to the contribution calculations. The rest of the scenario would still apply (statement, correction as needed to 2017 return, with reference to and documentation of the 2018 W2 on the 2017 1040x (amended return). Here is a relevant link, although not necessarily a clear answer as it is disputed: https://accountants-community.intuit.com/questions/1332132-can-contributions-be-made-to-your-401-k-o...

[gkmk]

With more research here is what I found,
1. 401K Makeup contribution is allowed only for Veterans under USERRA Act.
2. For those type of makeup contributions for previous years, IRS does provide the option to enter the 2 digit year, to indicate 401K employee contribution for past years (ex: D 17 D 16) etc. This information is also stated in IRS document GeneralInstructionsForW2 ()iw2w3) Page 18
3. Even for these type of makeup contributions, IRS does not say how those have to be reflected in the tax form. Past years tax return has to be amended for sure.
3. Since I am not a veteran, my employer obviously has made a mistake. Have reached out to them with these addl. info. Will update on how it goes.

[BMcCalpin]

Thanks for the update.

[gkmk]

Still working with my empyloyer. However, I found that you can make retroactive contributions to 401K for 2017 until April  15, 2018. So, the D17 entry on my 2018 W2 corresponds to 2017 make up contribution. In this situation, should I get a corrected W2C for 2017 (with the updated 401k amount in 12b) and another W2C for 2018 (excluding the D17 entry).

[Spino]

It's not your job to figure out how your employer should file, just how you should file. You have what your employer plans to give you. What you have to do is decide how to report it on your taxes. 1) Don't include the D17 in the D code entry, as this will generate an error. Instead code it as other. 2) If the contribution lowers your taxable income as declared on the W2, then all is well. Better to just accept that than to go back and refile 2017. It probably doesn't, though, so you want to go back and amend 2017, lowering your taxable income in view of the 2017 contribution made and reported in 2018. If you don't want to call a CPA, who might have to just do research with your employer and pay stubs anyway, try first calling your person at your employer, whom you've probably already talked to and ask for help on how to report it. They'll probably help you. (Of course, you're still responsible.)

[hansstev]

How did you end up resolving this issue?

[Spino]

You should report all codes listed on your w2 exactly as they're stated. This doesn't mean you have to do anything further with the information, although you may. You can report multiple codes in this box, and they may not all be listed. There is an option for code explanation of "other, not listed above".

The reason you want to be sure it is reported just as it is listed is because the IRS also gets this information directly from the entity issuing the W2, and their computers check to be sure they match.