Box 12 of the W2 form displays the total amount of money that was contributed to your 401(k) plan during the year. This number includes both the money that you contributed and the money that your employer contributed on your behalf. If you are interested in knowing how much of the total contribution was made by you and how much was made by your employer, you can refer to your pay stubs or other records from your employer.
What Box on W2 for 401k?
Contributions made to a 401(k) plan are usually shown in Box 12 of Form W-2. Box 12 is labeled “Employee contributions to Archer MSAs or Medicare Advantage MSAs.” The amount reported in Box 12 may include contributions made by the employee to a traditional 401(k) plan, a Roth 401(k) plan, or both.
Section D: Additional Retirement Plan Contributions
- Box 12a: Employee contributions to SIMPLE IRAs.
- Box 12b: Employee contributions to 401(k) plans (including federal government 401(k) and 403(b) plans).
- Box 12c: Employee contributions to SARSEPs (Salary Reduction Simplified Employee Pensions).
- Box 12d: Employee contributions to IRAs, including Traditional IRAs, Roth IRAs, and Coverdell Education Savings Accounts (Coverdell ESAs), including amounts transferred from education IRAs.
- Box 12e: Employee contributions to Health Savings Accounts (HSAs) in excess of the applicable contribution limit.
- Box 12f: Employee contributions to unfunded deferred compensation plans under Internal Revenue Code Section 409A.
401(k) Plans on Your W-2
Box DD on your W-2 shows the total amount of money you contributed to your 401(k) plan for the year.
Code DD: 401(k) Plans
- Box DD shows your total 401(k) contributions, including both employee and employer contributions.
- Your 401(k) contributions are deducted from your paycheck before taxes.
- The money in your 401(k) plan grows tax-deferred, meaning you don’t pay taxes on it until you withdraw it in retirement.
Example
If you contributed $1,000 to your 401(k) plan in 2023, you would see $1,000 in Box DD on your W-2.
It’s important to note that Box DD only shows your total 401(k) contributions. It does not show how much your investments have grown.
Table: What Box on W2 Shows 401k
| Box | Description |
|—|—|
| DD | Total 401(k) contributions |
Form 1099-R: Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
When you receive money from a retirement or profit-sharing plan, you will receive a Form 1099-R. This form reports the amount of money you received and the taxability of the distribution. Box 7 on the Form 1099-R shows the amount of money that was distributed from your 401(k) plan.
Table Showing the Different Types of Distributions and Their Taxability
| Distribution Code | Description | Taxability |
|---|---|---|
| 1 | Early distribution, no known exception | Fully taxable plus 10% penalty tax |
| 2 | Early distribution, exception applies (e.g., disability) | Fully taxable, no penalty tax |
| 3 | Disability | Not taxable |
| 4 | Death | Not taxable to beneficiary |
| 5 | Prohibited transaction | Fully taxable plus 10% penalty tax |
| 7 | Normal distribution | Fully taxable |
| 8 | Excess contributions plus earnings/accruals | Not taxable, earnings/accruals are taxable |
| 9 | Qualified nonperiodic distribution | 20% federal income tax withheld |
| G | Rollovers | Not taxable |
Box 12: Employee Contributions
Box 12 on your W-2 form shows the total amount of money you contributed to your 401(k) plan during the year. This includes both pre-tax and post-tax contributions. Pre-tax contributions are deducted from your paycheck before taxes are taken out, while post-tax contributions are made with after-tax dollars. Both types of contributions reduce your taxable income for the year.
It’s important to note that Box 12 only shows the amount of money you contributed to your 401(k) plan. It does not include any earnings or gains on your investments. To see the total value of your 401(k) plan, you will need to contact your plan administrator.
Here are some additional details about Box 12:
- The amount in Box 12 is used to calculate your tax liability.
- You can contribute up to the annual limit for 401(k) plans. For 2023, the limit is $22,500.
- If you contribute more than the annual limit, the excess contributions will be taxed and may be subject to a 10% penalty.
| Box Number | Description |
|---|---|
| 12 | Employee Contributions to 401(k) Plan |
And there you have it, folks! We’ve discovered the mysterious Box 12 on your W2, where your 401(k) contributions hide. Remember, it’s essential to understand your paystub and tax forms, so don’t hesitate to explore them further. Thanks for reading! If you have any more burning money questions, feel free to drop by again. Until next time, stay curious and financially savvy!