Roth IRA Contributions

[sstanley]

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

[macuser_22]

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.

[sstanley]

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

[sstanley]

Is that correct?

[macuser_22]

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@sstanley wrote:

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

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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   It can either be a Traditional IRA (after-tax money) that you pay taxed on when finally withdrawn, or a Roth IRA (before-tax money) that you pay tax on before contributing it so it will be tax free when withdrawn.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.

[sstanley]

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

[macuser_22]

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

[sstanley]

Thank you so much for your help!