topic Do you deduct IRA and Roth IRA contributions in the deductions and credits section if it is automatically taken from your paycheck? in Retirement tax questions

Do you deduct IRA and Roth IRA contributions in the deductions and credits section if it is automatically taken from your paycheck?

jacob.latter518 — Tue, 10 Feb 2026 08:58:09 GMT

Re: Do you deduct IRA and Roth IRA contributions in the deductions and credits section if it is automatically taken from your paycheck?

VolvoGirl — Wed, 31 Jan 2024 17:36:31 GMT

No. Only enter it from your W2. It's probably not a IRA but a 401K. What code is in box 12 for it?

Re: Do you deduct IRA and Roth IRA contributions in the deductions and credits section if it is automatically taken from your paycheck?

dmertz — Wed, 31 Jan 2024 17:36:56 GMT

Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax. Do not enter them under Deductions & Credits. It's also likely that your employer's plan is not an IRA.

Re: Do you deduct IRA and Roth IRA contributions in the deductions and credits section if it is automatically taken from your paycheck?

Opus 17 — Wed, 31 Jan 2024 17:46:19 GMT

This is more complicated than it first sounds, thanks to a relatively new thing called a "Payroll deduction IRA."

https://www.irs.gov/retirement-plans/plan-sponsor/payroll-deduction-ira

If you have a qualified workplace plan, such as a 401k or 403b, those plans are reported on your W-2. They are not IRAs (even though they are similar) and you do not report the contributions as IRA contribution. Only on your W-2.

The payroll deduction IRA is an arrangement where you open your own private IRA (possibly at a bank of your choosing, possibly at a bank selected by the employer). The employer takes after-tax payroll deductions and sends them to the bank for you. The employer is not allowed to take pre-tax deductions and the employer can't add matching funds. Essentially, the payroll deduction IRA is a way to save in your own private IRA but have your employer help you by taking a payroll deduction instead of giving you the money, which you might spend instead of saving. (My old employer offered a way to buy savings bonds from payroll deductions, or split my paycheck between a checking and a savings account. Basically the employer is helping you to save your own money.)

If you have a payroll deduction IRA, the deductions are not on your W-2 and you do need to report them to get the tax deduction.