What is the right category to select for Box 14 of employer deducted pension contributions?

[claypoka]

My employer has used Box 14 of my W2 for my pension deductions and "RET" in the description. I need to know what Category to select for this type of deduction. I have selected Other deductible state or local but I think last year I said 'Other' and wondering if I shorted myself last year.

[Bsch4477]

That might be the amount in your Cafeteria Plan. Ask your employer. 

[TomK2023]

RET probably describes a contribution to a retirement plan.  Ask your employer's HR Department.

[claypoka]

I don't have a Cafeteria plan. This is for state pension deductions.

[claypoka]

Yes, it is - that is not the question. On Turbo Tax they require me to select a Category for this and my state retirement isn't a selection. The only available selections that seem to apply are either Other or Other  state or local"

[BillM223 · Accepted solution]

The IRS does not give a set list of options for box 14 - this box is used primarily for the employer to communicate something to the employee. If you don't know what it is, we advise "Other" as the category.

However, I am puzzled that your "state pension deductions" are not listed above in box 12. What are these deductions? Are they, as Tom suggested, a contribution to your retirement plan? Or are they after-tax contributions to your plan? Have you asked your employer what they intended to communicate to you by making this entry? As an aside, what is your state pension? a 457? a 401(a)?

[claypoka]

This was a great answer! So I can see they put my state pension deductions into box 14. On the Turbotax dropdown I will continue to use "other." It doesn't seem to matter what I say it's for on the Turbotax dropdown after it imports my W2 info.

Boxes for 12 include my life insurance (12a, C) and health insurance deductions (12b, DD). 

[BillM223 · Accepted solution]

"It doesn't seem to matter what I say it's for on the Turbotax dropdown after it imports my W2 info."

In same case, the choice of category should make a difference. "Other (not classified)" makes no impact on your return, while "Other deductible state or local tax" should appear on Schedule A as a state or local tax. However, as you probably realize, state and local taxes often don't make a different on tax returns, because the taxpayer either doesn't itemize or because the taxpayer's state and local taxes exceed $10,000.

But the reason we asked about what this value represented was because contributions to pension funds are normally exclusions from income, not deductions. Thus, in most cases, the contributions to a retirement plan would be removed from Wages in Box 1 on your W-2 and added to box 12 with a code of D.

This is so common, it makes us wonder what your employers is trying to say.

[claypoka]

Thank you! Yes, they are exclusions, not deductions as I can see from what is being taxed compared to my overall gross income on the W2. The amount I'm getting back for federal doesn't make a difference ($1, whoo hoo) but I'll see if it makes a difference in my state return between 'Other' and 'Other deductible state or local tax' and I'll report back 🙂

[BillM223]

If indeed this is an exclusion, then I assume from what you are saying that your employer has indeed removed this amount from Wages in box 1 on your W-2. If so, then we want to just enter this amount as "Other (not classified)", so that TurboTax doesn't do anything else with it (your employer has already done it when they excluded it from your Wages).

If this is all true, don't worry about your state - nearly all states start with federal numbers that include the exclusion (which seem counterintuitive, I agree).

[WOW2]

I have this exact situation. Box 1 and Box 3 are different by exactly what is labeled as RETIR in Box 14.  But turbotax doesn't pick it up, and therefore it doesn't look like it qualifies for Credit for Retirement Savings on form 8880.  This would amount to a $200 on this return.  Any ideas?

[Bsch4477]

Generally retirement contributions in box 14 are mandatory and so not eligible for savers credit. Ask your employer.