Where Are 403b Contributions Reported on a W2?

The W-2 form serves as an annual summary of an employee’s wages, taxes withheld, and other compensation information. For employees of public schools and certain tax-exempt organizations, a 403(b) plan is a common retirement savings vehicle that allows for tax-deferred growth. Understanding how contributions to these plans are reflected on your W-2 is important for accurate tax filing.

Locating Your 403(b) Contributions on Your W-2

Your W-2 form details your annual earnings, including 403(b) contributions. Employee contributions, whether made on a pre-tax basis or as Roth contributions, are reported in Box 12. This box allows for up to four lettered entries, typically labeled 12a, 12b, 12c, and 12d.

For pre-tax 403(b) salary deferrals, you will find Code E next to the corresponding amount in Box 12. This amount represents the total contributions made to your 403(b) account before federal income taxes were withheld. If you made Roth 403(b) contributions, Box 12 will display Code BB along with the contributed amount. This figure reflects contributions made with after-tax dollars.

How 403(b) Contributions Affect Your Taxable Wages

The type of 403(b) contribution you make directly influences how your wages are reported in other sections of your W-2. Pre-tax 403(b) contributions, identified by Code E in Box 12, are excluded from the amount reported in Box 1, which represents your taxable wages for federal income tax purposes. This exclusion effectively reduces your current federal taxable income. Conversely, Roth 403(b) contributions, indicated by Code BB in Box 12, are included in Box 1 because they are made with money that has already been taxed.

Regardless of whether your 403(b) contributions are pre-tax or Roth, they are generally included in your Social Security wages (Box 3) and Medicare wages (Box 5). This means that while pre-tax contributions reduce your federal income tax liability, both pre-tax and Roth contributions remain subject to Social Security and Medicare (FICA) taxes.

Beyond Your Deferrals: Other W-2 Reporting

Beyond your direct employee deferrals, other boxes on your W-2 might provide additional information related to your 403(b) plan. Box 14, labeled “Other Information,” is a flexible box where employers can report various items. While not mandatory, employers may use Box 14 to provide details such as employer contributions, which are distinct from your elective deferrals. These entries are typically informational and do not directly impact your taxable wages in the same way as the amounts in Box 12.

Another relevant area is Box 13, which contains several checkboxes, including one for “Retirement plan.” If this box is checked, it indicates that you were covered by a retirement plan, such as a 403(b) plan, for the year. This checkbox is important because it can affect the deductibility of traditional IRA contributions you might make, depending on your income level.