(Tax Year 2024 – Filed in 2025)
Overview
Retirement contributions are a key part of many W-2 employees’ compensation packages. These contributions—whether to a 401(k), 403(b), 457(b), or Roth 401(k)—are reflected on your Form W-2, primarily in Box 12 and indirectly in Box 1.
Understanding how these contributions are reported and how they affect your taxable income is essential for accurate tax filing and long-term financial planning. Contributions can lower your tax liability now or grow tax-free for future withdrawals, depending on the type of plan.
Where to Find Retirement Contributions on Your W-2
Box 12 – Codes D, E, G, AA, BB
| Code | Plan Type | Pre-Tax or Post-Tax | Tax Impact |
|---|---|---|---|
| D | 401(k) traditional | Pre-tax | Lowers taxable income |
| E | 403(b) plan | Pre-tax | Lowers taxable income |
| G | 457(b) government plan | Pre-tax | Lowers taxable income |
| AA | Roth 401(k) | Post-tax | Taxed now, tax-free later |
| BB | Roth 403(b) | Post-tax | Taxed now, tax-free later |
Box 13 – Retirement Plan Checkbox
If this box is checked, it means you participated in a qualified retirement plan during the year. This can affect your eligibility to deduct IRA contributions.
How Retirement Contributions Affect Your Taxes
Pre-Tax Contributions (Traditional Plans)
- Lower your Box 1 (taxable wages)
- Reduce your federal income tax liability for the year
- You’ll pay taxes when you withdraw the money in retirement
Post-Tax Contributions (Roth Plans)
- Do not reduce Box 1 wages
- Contributions are taxed now
- Earnings and withdrawals are tax-free in retirement (if rules are followed)
2024 Contribution Limits
For 401(k), 403(b), and most 457(b) plans:
- $23,000 if under age 50
- $30,500 if age 50 or older (includes $7,500 catch-up contribution)
These limits apply to total employee elective deferrals and are enforced across all employers combined.
Example: Traditional vs. Roth 401(k)
Case 1: Traditional 401(k)
Alicia earns $100,000 and contributes $10,000 to her traditional 401(k).
- Box 1 shows $90,000
- Box 12 shows Code D – $10,000
- She saves on taxes now but will pay tax on withdrawals in retirement.
Case 2: Roth 401(k)
Jared also earns $100,000 and contributes $10,000 to a Roth 401(k).
- Box 1 shows $100,000 (no reduction)
- Box 12 shows Code AA – $10,000
- He pays taxes now but enjoys tax-free withdrawals later.
Tax Filing Considerations
- Do not deduct 401(k) or 403(b) contributions on your tax return. They are already excluded from your W-2 taxable wages.
- Box 13 indicates plan participation and can limit your ability to deduct IRA contributions.
- Form 8880 (Saver’s Credit) may apply if your income is below certain thresholds and you made eligible contributions.
Step-by-Step: What to Do With Retirement Info on Your W-2
- Check Box 12
- Look for codes D, E, G, AA, or BB
- Note the contribution amount
- Check Box 13
- If marked, it may affect your traditional IRA deduction
- Compare to Contribution Limits
- Ensure you didn’t over-contribute across multiple employers
- Use for Planning
- Adjust current year contributions based on tax impact
Conclusion
Your W-2 provides important details about your retirement savings—whether you’re contributing pre-tax or post-tax. Knowing how to interpret these boxes can help you file accurately, stay within IRS limits, and make informed decisions about your retirement strategy.
Call to Action
Need help understanding how your 401(k) or Roth contributions affect your taxes? Schedule a meeting with Anshul Goyal, CPA EA FCA for a personalized review of your W-2 and advice on retirement tax planning for 2024 and beyond.
Top 5 FAQs: W-2 Retirement Contributions
Where do I find my 401(k) contributions on the W-2?
They are shown in Box 12, usually with Code D.
Does contributing to a 401(k) reduce my taxable income?
Yes, if it’s a traditional 401(k). Roth 401(k) contributions do not reduce taxable income.
Can I still contribute to an IRA if I have a 401(k)?
Yes, but your IRA deduction may be limited if Box 13 is checked and your income exceeds certain thresholds.
What happens if I contribute too much to my 401(k)?
You must notify your employer and withdraw the excess by April 15 to avoid double taxation.
Is Box 13 always checked if I contribute to a retirement plan?
Yes, if you participated in any employer-sponsored retirement plan for the year.
About Our CPA
Anshul Goyal, CPA EA FCA is a U.S.-licensed Certified Public Accountant and IRS-authorized Enrolled Agent. He advises individuals and professionals—including Indian residents in the U.S.—on retirement tax planning, W-2 reporting, and long-term IRS compliance.
Schedule a meeting with Anshul here:
https://calendly.com/anshulcpa/
Disclaimer
This article is for informational purposes only and does not constitute legal or tax advice. Please consult a qualified CPA for advice specific to your financial situation.