Question

W-2 Box 11 matched Box 12C

Forum|Forum|2 years ago
April 8, 2024
1 reply
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I don't understand how to answer the question for W-2 Box 11 regarding whether it is money contributed to or money taken out of a nonqualified plan. I don't see how it is either, as it relates to excess (>$50k) group term life insurance paid by the employer. Please advise.

SusanY1

It sounds like there is an entry error for the W2. Return to the entry area for Wages & Income and select edit beside the W2. Then remove the entry from box 11 and enter the data in box 12, with code C for the excess life insurance. This should clear the error for you.

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C

catchickAuthor

Thanks for your reply.

Would the employer need to provide a corrected W-2 since thats how the numbers are reported on the official W-2? I'm not comfortable erasing their entry without it being official.

Just as an FYI: It was reported this way in 2022, so I don't think it is a reporting error (especially with this employer). I don't recall answering this Box 11 question last year.

Assuming it is reported correctly in Box 11, how is an employer paying Life Insurance on my behalf considered a nonqualified plan distribution or contribution? If I were to answer the question for Box 11, how would you advise I answer it?

Finally, how does TurboTax use the answer in Box 11 to complete my taxes? In other words, would a wrong answer have an impact on taxable income/taxes owed?

T

ThomasM125

This is what is mentioned on the instructions for box 11 on a W-2 form:

So, it relates to a retirement plan. TurboTax needs to know if it is a contribution to or distribution from your retirement plan:

I suggest you ask your employer if it is a contribution or distribution. I cannot say how it would affect your tax return since I don't know what entries are on it.

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