Which box on w2 is 401k?

When you are preparing for the tax season, you will probably receive multiple tax forms. One of these tax forms is W-2, also known as the Wage and Tax statement. Employers are required to issue W-2 every year between December 31 and January 31. Employees must fill in their personal information, total wages earned, the amount of taxes withheld, retirement contributions, and the federal identification numbers for both the employee and employer. There are many boxes and codes on W-2, and taxpayers may be overwhelmed when filing their annual tax returns.

401(k) contributions are recorded in box 12 of the W-2 tax form, under the letter code “D”. When recording 401(k) contributions for each employee, the employer enters a single letter D, followed by the dollar amount of the employee’s contribution.Box 12D also includes deferrals under a SIMPLE 401(k) retirement account. Box 12 of W-2 tax form applies to deferred contributions and there are different types of retirement benefits that are recorded in the Box under different letter codes.

Related Codes Used for W-2 Box 12

If you are filing taxes on your own, you should understand the various W-2 box 12 codes. The common codes used for Box 12 include:

D: Elective deferrals under section 401(k) plan. Deferrals under a SIMPLE 401(k) are also recorded in this section. If an employee contributes to a 401(k), enter code D and write the amount contributed.

E: The amount of salary deferred under section 403(b) salary reduction agreement. If an employee contributes to a 403(b), enter Code E and write the amount contributed. 

F: The amount of salary deferred under section 408(k)(6) salary reduction agreement. If an employee contributes to a 408(k)(6) account, including a SEP retirement plan, write F and enter the amount contributed in Box 12.

G: Elective and non-elective deferrals made to a section 457 (b) compensation plan. A 457 (b) retirement plan is used for government-owned businesses such as hospitals. If an employee contributes to a 457(b), write G and record the amount contributed to the plan.

H: The amount of salary deferred to a section 501(c)(18)(D) tax-exempt organization retirement plan. If an employee contributes to a 501(c)(18)(D) account, enter H and record the amount contributed in Box 12 and Box 1 ("Wages, Tips, Comp" amount).

S: The amount of salary deferred under section 408(p) SIMPLE IRA retirement plan. If an employee contributes to a SIMPLE IRA, enter S and record the amount contributed in Box 12.

AA: Amount of salary deferred to a Roth 401(k) retirement account. If an employee contributes to a Roth 401(k) account, you should record the amount contributed in Box 12. Roth 401(k) contributions are not deductible from the paycheck.

BB: Amount of salary deferred to a Roth 403(b) retirement plan. If an employee contributes to a Roth 403(b) account, record the amount contributed in Box 12.

DD: The cost of employer-sponsored health coverage. The amount of employer-sponsored health coverage is recorded in Box 12 with the code DD.

EE: The amount of salary deferred to a Roth 457(b) retirement plan. This does not apply to tax-exempt organization’s 457(b), since they do not have designated Roth accounts. Roth contributions under a 457(b) plan are recorded in Box 12.

Who Files Form W-2?

An employer is required to send Form W-2 to every employee of the company who earned a salary or other type of compensation. The form must be sent each year before January 31 to allow employees enough time to file income taxes ahead of the IRS deadline. If the IRS extends the deadline, you can delay payment of taxes without incurring a penalty tax. An employee uses the W-2 form to file taxes for the previous year.

The employer also uses W-2 form to report FICA taxes for each employee to the Social Security Administration (SSA). SSA uses the information provided in W-2 to determine the amount of social security that each employee is entitled to.

How Much Money Do You Need to Get W-2?

If you earned at least $600 during the tax year, your employer will send out a W-2 form. Also, if you had taxes withheld by your employer, you will receive a W-2 form regardless of the amount you earned. The IRS requires that employees must include all incomes earned during the year on their tax return.

If an employer considers you as an independent contractor rather than as an employee, you won’t receive a W-2. Instead, you will receive Form-1099 MISC, as long as you earned $600 or more from your employer. If you don’t receive W-2 from your employer by February 14, you should contact the IRS at (800)829-1040 for assistance. The IRS will issue Form 4853 as a substitute for Form W-2. You should indicate the estimated income and tax withholding and attach it to your annual tax return.