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Are employers required to report the contribution on W-2? If not reported, then what is the effect on the income tax return filed without this information? Do they need to amend their income tax returns?

  • country tag? assuming it's the US? Employers are required to include on the W2 any and all legally required reporting. If they do not, you can request they correct it and they can send you a corrected version. Chances are if they are not reporting something you think they should be, then you are either understanding it wrong, not seeing it properly or is not their responsibility. But if you are confident it is, call the IRS or ask them to correct it. Unfortunately you doing taxes wrong and claiming they didn't give you the information is rarely if ever accepted by the IRS as a valid argument. – GµårÐïåñ Mar 31 '17 at 1:09
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    Did you mean IRA or 401K? – mhoran_psprep Mar 31 '17 at 2:22
  • @mhoran_psprep Roth IRA and Roth 401(k) are both 'after tax', and not deductible, and neither will be reported by the company as deductible contributions. And normally, the company is not involved in Roth IRA accounts. – Xalorous Mar 31 '17 at 21:40
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IRAs are individual (that's what the "I" in IRA stands for). IRA contributions are made by the person individually. IRAs have nothing to do with the employer, and there is no reason an employer would know about or report it.

  • Some Roth contributions can be handled by the employer. E.g. you can have a designated roth account within your 401k account, along side your 401k plan, which is set up for automatic percentage of your paycheck, chosen by you, but deposited by your company. That money is an after tax allotment. It shows in your income. It does not show in your tax deductible contributions spot, because it's not. No, they do not report the contribution. – Xalorous Mar 31 '17 at 21:38
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    @Xalorous: But those are not IRAs. – user102008 Mar 31 '17 at 21:42
  • no, they're Designated Roth Accounts, and they follow almost exactly the same set of rules. Link in my answer. Don't argue with me, take it up with the IRS. You're right that the contributions to any IRA are from the employee. You're wrong that the employee is the only one who can make the contributions. Since the employer can make the contribution (on behalf of the employee), the question "Why isn't this on my W-2?" is answered by, "Because it's not a deductible contribution." Therefore employer is not required to report, and employee does not need to file amended. – Xalorous Mar 31 '17 at 21:48
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    @Xalorous: Again, this question is about (Roth) IRAs, not Designated Roth 401(k) Accounts. I specifically said "IRA contributions" in my answer. That the IRA is Roth and thus not deductible is not relevant -- Traditional IRA contributions also have nothing to do with the employer and are also not reported by the employer. – user102008 Mar 31 '17 at 21:57
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The short answer is no. Roth contributions are post-tax (not tax deductible). They are often handled directly from the employee's banking setup and the employer has no insight into them. Roth 401(k) and Designated Roth Accounts within a standard 401(k) portfolio seem far rarer than a standard 401(k). (This is just my impression.)

Contributions to Roth plans are not tax deductible. If you have a Roth IRA within your 401(k) (Designated Roth Account), and you make contributions to it through direct deposit, those contributions are not supposed to be included when your employer reports how much you contributed to your tax deductible retirement plan. The contributions are still part of your income. Roth IRA and Designated Roth Account. There's a link on the Roth IRA page that will get you a .pdf showing you the differences between the two.

  • What's wrong here isn't your answer, but the downvote (I just added a +1). This looks right to me, and the DV should really offer a 'correct' answer if this doesn't do it. – JoeTaxpayer Mar 31 '17 at 19:14
  • @JoeTaxpayer I cribbed it from the IRS pages. It IS the answer. I actually work for a company that has Roth 401(k) available within our retirement portfolio. Fidelity handles all the accounts (and our HSAs if we choose), but my company elected to make that choice available. Some savvy folks in our HR department I think. – Xalorous Mar 31 '17 at 21:43
  • My gut was right, good answer, odd for a member to hit DV. – JoeTaxpayer Mar 31 '17 at 21:44
  • The IRS pages are actually a bit of an example of where the government is actually getting things right. They're using technical writers who focus on clear, concise explanations with minimal jargon, and what little they use they provide references for learning about it. I'm a stickler about how I write things. I want my meaning to be conveyed clearly. I see the same focus in their writing. Comparing Roth and Traditional IRAs. This explains the differences so that anyone can understand. Don't need to be a CPA. – Xalorous Mar 31 '17 at 21:55
  • Agreed! A year or so ago, a member here posted something (from IRS.gov that had a typo, a wrong number. I answered here, that it was surely a typo and give me a few days. Sure enough, the IRS guys responded to my email and fixed the site 2 days later. They are a good bunch. – JoeTaxpayer Mar 31 '17 at 21:58

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