Is it right when Box1 wages are less than my gross wages?

[cnywijj]

Is it right that I am limited to 401k contirbutions when box1 wages are significantly lower than my gross wages? I specifically contributed most of my wages to my 401k for the tax deduction. 

[dmertz · Accepted solution]

Yes.  Your employer excludes the amount of your elective deferrals to the 401(k) from the amount in box 1.  That's how the taxes are deferred, by not including it in box 1.

Your elective deferrals should be shown with code D in box 12 of your W-2.  Enter amounts shown in box 12 of your W-2 only in box 12 of TurboTax's W-2 form, nowhere else in TurboTax.