Box 12 Issue

Forum|Forum|2 years ago
January 31, 2024
1 reply
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Hey guys,

I also had issues with the Coding for S/D and did some research. According to IRS: "Code S—Employee salary reduction contributions under a section 408(p) SIMPLE plan. Show deferrals under a section 408(p) salary reduction SIMPLE retirement account. However, if the SIMPLE plan is part of a section 401(k) arrangement, use code D. If you are reporting prior year contributions under USERRA, see the TIP above Code D under Box 12—Codes."

Therefore use Code D instead of Code S, even though it is a Simple IRA, our employers does have it as 401k arrangement. They are coding it wrong and I don't know why Code S won't work but I changed it to Code D and it went through. Good luck!

Best answer by dmertz

TurboTax has been updated today to allow the reporting of these types of salary deferrals. It took Intuit a few weeks to understand that the IRS notice issued on January 8, 2024 regarding these types of deferrals had no impact on the operation of TurboTax.

"Therefore use Code D instead of Code S, even though it is a Simple IRA"

False. Code D is only for a SIMPLE 401(k) salary deferral. Code S is to be used for a SIMPLE IRA salary deferral. Nothing has changed with regard to that. See the instructions for 2023 Form W-2.