topic Roth IRA Contributions in Get your taxes done using TurboTax

Roth IRA Contributions

sstanley — Sun, 16 Feb 2020 16:37:47 GMT

When I add money to my employer set IRA, do I then add that to my tax form to gain a reduction in my taxes or is this already factored in my W-2

Re: Roth IRA Contributions

macuser_22 — Sun, 16 Feb 2020 16:43:05 GMT

Your employer plan reported on your W-2 is NOT an IRA and does not get entered anywhere other then the W-2.

If box 12 on your W-2 has code "AA" the it is a "designated Roth" which is a type of an employer 401(k) plan and has nothing to do with an IRA whatsoever.

Re: Roth IRA Contributions

sstanley — Sun, 16 Feb 2020 16:42:56 GMT

So this reporting is only for contributions made outside of any employment.

Re: Roth IRA Contributions

sstanley — Sun, 16 Feb 2020 16:44:35 GMT

Is that correct?

Re: Roth IRA Contributions

macuser_22 — Sun, 16 Feb 2020 16:48:15 GMT

@sstanley wrote:

So this reporting is only for contributions made outside of any employment.

Yes. An IRA is a "I"ndividual "R"etirment "A"ccount held in your name in a bank or financial institution that you can make your own contributions to. It can either be a Traditional IRA (after-tax money) that you pay taxed on when finally withdrawn, or a Roth IRA (before-tax money) that you pay tax on before contributing it so it will be tax free when withdrawn. There are advantages and disadvantages to both.

Re: Roth IRA Contributions

sstanley — Sun, 16 Feb 2020 16:49:00 GMT

So I have an AA on my W-2, and also a DD. What does DD mean?

Re: Roth IRA Contributions

macuser_22 — Sun, 16 Feb 2020 16:52:25 GMT

Code DD is for your information only. It informs you of the cost of health care that your employer provided.

Re: Roth IRA Contributions

sstanley — Sun, 16 Feb 2020 16:53:42 GMT

Thank you so much for your help!