W-2 box 12-d, when entering amount that was deferred, reduced my refund by 100% of what I had deferred.

[westairmed]

Entering in 12-D is making the amount I deferred into my company sponsored 401k 100% taxable. Everything I have read is showing that those contributions should be tax-deferred until they are withdrawn.

[Rachel_W · Accepted solution]

Yes, what you have read is correct, anything you have withheld from your pay and put into your Company Sponsored 401(k) is tax-deferred, meaning, it won't be taxed until it is withdrawn.

I think what happened is you chose the wrong code from the drop-down menu for Box 12 of the Form W-2 input screen.  Be sure you are selecting Code "D, Elective Deferrals to 401(k)".  I played around with the W-2 Input screen and I think you may have selected Code "K, 20% Excise Tax- Golden Parachute".