Do 401k Contributions Show Up on Your W2?

The Form W-2, also known as the Wage and Tax Statement, is an annual document employers issue to summarize an employee’s yearly earnings and the taxes withheld from their pay. Employers are required to issue this form between December 31 and January 31 each year. This statement includes important details like personal information, total wages, and retirement contributions, which are used when filing annual tax returns. Understanding how 401(k) contributions appear on your W-2 is important for managing retirement savings.

Locating 401k Contributions on Your W2

401(k) contributions are reported on your W-2, specifically in Box 12. This box is designated for reporting various types of deferred compensation and other income or benefits. Each type of contribution or benefit in Box 12 is identified by a specific code.

For traditional 401(k) contributions, you will find Code D in Box 12, followed by the total amount you contributed during the year. This code signifies elective deferrals under a 401(k) plan. If you contributed to a Roth 401(k), the amount will be reported in Box 12 with Code AA. Box 12 also reports other deferred contributions, such as those to 403(b) plans (Code E) or 457(b) plans (Code G).

Distinguishing Pre-Tax and Roth 401k Contributions

The distinction between pre-tax (traditional) 401(k) and Roth 401(k) contributions lies in their tax treatment and how they affect your current taxable income. Pre-tax 401(k) contributions are made from your gross pay before income taxes are calculated. This reduces your current taxable income, which is reflected in Box 1 of your W-2.

Roth 401(k) contributions are made with after-tax dollars. This means taxes have already been withheld from your income before the contribution is made, so these contributions do not reduce your current taxable income. While they don’t offer an upfront tax deduction, qualified withdrawals from a Roth 401(k) in retirement are tax-free, including any earnings.

Impact on Your Taxable Wages

The type of 401(k) contribution influences the amounts reported in other boxes on your W-2. For pre-tax 401(k) contributions, the amount you contribute is subtracted from your gross wages before income tax is calculated. This results in a lower amount reported in Box 1, “Wages, tips, other compensation.”

Pre-tax 401(k) contributions do not reduce your wages subject to Social Security and Medicare taxes. Therefore, the amounts in Box 3 (“Social Security wages”) and Box 5 (“Medicare wages”) will include your pre-tax 401(k) contributions. Conversely, Roth 401(k) contributions do not reduce Box 1 because they are made with after-tax dollars. Similar to pre-tax contributions, Roth 401(k) contributions are still subject to Social Security and Medicare taxes, meaning they are included in Box 3 and Box 5.