Question

How do I file when I have a 401k

Forum|Forum|7 years ago
June 1, 2019
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Until you take a distribution from your 401(k), there is nothing more you need to do than simply enter your W-2 form(s). Your 401(k) contribution amount will be reported on your W-2 from your employer in Box 12 as Code D. Your 401(k) contribution amount will be already be reduced from your wages, tips and other compensation in boxes 1, 16 and 18 since your contributions are treated as tax-free. Note that 401(k) contributions do not reduce wages applicable for the computation of Social Security (Box 3) or Medicare (Box 5).

When you take a distribution from your 401(k), you (and the IRS) will receive a Form 1099-R from your 401(k) plan reporting the distribution, along with any taxes and early withdrawal penalty. It is when you receive a distribution from your 401(k) that you pay taxes on the income.

C

ChristinaS

Employee

All you do is enter your W2. You don't do much to report a 401(k). The contributions should be listed in Box 12 of your W2- code D. Just make sure you enter that- if you contributed in 2016.

You don't get a tax deduction on your tax return for these contributions, as your W2 wages have already been lowered to account for your contributions.

If you are eligible for the Saver's Credit (Form 8880), Turbo Tax will automatically recognize this just by adding your W2.