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Level 2
posted Jan 14, 2024 9:21:06 PM

Making a direct 401k contribution

My employer told me to make a direct deposit to max my 401k contribution.

But the amount I made didn't appear on box 12 of w-2.

Where is that amount entered on my return?

0 1 135
1 Best answer
Level 15
Jan 15, 2024 6:08:28 AM

Elective deferrals must be taken from your pay, deposited by your employer and reported on your Form W-2.  They are not deductible on your tax return because the deferral in income is to be reflected by your employer in the amount shown in box 1 of your W-2.

 

You might be able to make an after-tax (not Roth) contribution directly to the plan, plan permitting, but that's not reportable on your W-2 and, being an after-tax contribution, you get no deduction for that.  An after-tax contribution might qualify you for a Retirement Savings Contributions Credit, in which case you would enter it in the Retirement Savings Contributions Credit section of TurboTax.

 

Confirm with the plan the nature of the contribution.  The plan is still responsible for ensuring that an after-tax contribution does not exceed the allowable limit based on your compensation from the employer.

1 Replies
Level 15
Jan 15, 2024 6:08:28 AM

Elective deferrals must be taken from your pay, deposited by your employer and reported on your Form W-2.  They are not deductible on your tax return because the deferral in income is to be reflected by your employer in the amount shown in box 1 of your W-2.

 

You might be able to make an after-tax (not Roth) contribution directly to the plan, plan permitting, but that's not reportable on your W-2 and, being an after-tax contribution, you get no deduction for that.  An after-tax contribution might qualify you for a Retirement Savings Contributions Credit, in which case you would enter it in the Retirement Savings Contributions Credit section of TurboTax.

 

Confirm with the plan the nature of the contribution.  The plan is still responsible for ensuring that an after-tax contribution does not exceed the allowable limit based on your compensation from the employer.