topic Re: W-2 Box 11 matched Box 12C in Retirement tax questions

W-2 Box 11 matched Box 12C

catchick — Wed, 11 Feb 2026 08:43:49 GMT

I don't understand how to answer the question for W-2 Box 11 regarding whether it is money contributed to or money taken out of a nonqualified plan. I don't see how it is either, as it relates to excess (>$50k) group term life insurance paid by the employer. Please advise.

Re: W-2 Box 11 matched Box 12C

SusanY1 — Mon, 08 Apr 2024 23:49:26 GMT

It sounds like there is an entry error for the W2. Return to the entry area for Wages & Income and select edit beside the W2. Then remove the entry from box 11 and enter the data in box 12, with code C for the excess life insurance. This should clear the error for you.

Re: W-2 Box 11 matched Box 12C

catchick — Tue, 09 Apr 2024 13:16:44 GMT

Thanks for your reply.

Would the employer need to provide a corrected W-2 since thats how the numbers are reported on the official W-2? I'm not comfortable erasing their entry without it being official.

Just as an FYI: It was reported this way in 2022, so I don't think it is a reporting error (especially with this employer). I don't recall answering this Box 11 question last year.

Assuming it is reported correctly in Box 11, how is an employer paying Life Insurance on my behalf considered a nonqualified plan distribution or contribution? If I were to answer the question for Box 11, how would you advise I answer it?

Finally, how does TurboTax use the answer in Box 11 to complete my taxes? In other words, would a wrong answer have an impact on taxable income/taxes owed?

Re: W-2 Box 11 matched Box 12C

ThomasM125 — Tue, 09 Apr 2024 22:44:39 GMT

This is what is mentioned on the instructions for box 11 on a W-2 form:

So, it relates to a retirement plan. TurboTax needs to know if it is a contribution to or distribution from your retirement plan:

I suggest you ask your employer if it is a contribution or distribution. I cannot say how it would affect your tax return since I don't know what entries are on it.

Re: W-2 Box 11 matched Box 12C

TaxQuestionsTX — Sun, 14 Apr 2024 19:29:27 GMT

Please interpret the tax code for us and let us know how to answer TurboTax's question.

This is not an employer questions. The question is whether or not employer-paid life insurance premiums for a retiree, to give coverage over the $50K limit, are considered a distribution from a non-qualified plan or considered a contribution a non-qualified plan. The amount is premium paid by a (former) employer to a retiree. The retiree is not receiving money. The retiree is not paying money. Nor is the retiree contributing to their non-qualified plan. TurboTax should add the question as to whether this is for a employer-paid life insurance and then apply the tax law appropriately.

Please interpret the tax code for us and let us know how to answer TurboTax's question.