Wrong code and amount on W-2 for Simple IRA?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
stingray777
Posts: 65
Joined: Sun Dec 08, 2019 2:57 pm

Wrong code and amount on W-2 for Simple IRA?

Post by stingray777 » Thu Feb 13, 2020 1:02 pm

I got a W-2 from the employer, and I talked to the HR, but I still am not 100% convinced. So please help me out.
This is what I have on W-2:

12a code: E 7182
12b code: S 9463
Retirement plan: X

I was told by HR that code E was OK for Simple IRA, even though it is usually for 403(b) plan. I could not confirm it myself, but if that is how it works, fine with me. 2019 was my first year to put money into retirement plan, so I am new to this. We are a small business, not non-profit company.

My big concern is the amount on 12b. HR said the contribution amount from the employer was the difference between the two: $9463 - $7182 = $2281. However, when I was doing the tax return with HR block software, it told me that I have contributed more than the standard amount of $13000, so the excess would be counted as my income. This is not correct.

I really think It should only say code S - 7182
Could please someone confirm it before I go back to HR?

Spirit Rider
Posts: 12414
Joined: Fri Mar 02, 2007 2:39 pm

Re: Wrong code and amount on W-2 for Simple IRA?

Post by Spirit Rider » Thu Feb 13, 2020 1:20 pm

HR is wrong, what else is new.

SIMPLE IRA employee deferrals are only reported as Box 12 Code S.

Employer contributions for a SIMPLE IRA plan are not reported on a W-2 anywhere.

niceguy7376
Posts: 2588
Joined: Wed Jul 10, 2013 2:59 pm
Location: Metro ATL

Re: Wrong code and amount on W-2 for Simple IRA?

Post by niceguy7376 » Thu Feb 13, 2020 1:41 pm

stingray777 wrote:
Thu Feb 13, 2020 1:02 pm
I got a W-2 from the employer, and I talked to the HR, but I still am not 100% convinced. So please help me out.
Do they do their own payroll internally?

Topic Author
stingray777
Posts: 65
Joined: Sun Dec 08, 2019 2:57 pm

Re: Wrong code and amount on W-2 for Simple IRA?

Post by stingray777 » Thu Feb 13, 2020 2:47 pm

niceguy7376 wrote:
Thu Feb 13, 2020 1:41 pm
stingray777 wrote:
Thu Feb 13, 2020 1:02 pm
I got a W-2 from the employer, and I talked to the HR, but I still am not 100% convinced. So please help me out.
Do they do their own payroll internally?
It is outsourced.

Topic Author
stingray777
Posts: 65
Joined: Sun Dec 08, 2019 2:57 pm

Re: Wrong code and amount on W-2 for Simple IRA?

Post by stingray777 » Thu Feb 13, 2020 2:59 pm

Spirit Rider wrote:
Thu Feb 13, 2020 1:20 pm
HR is wrong, what else is new.

SIMPLE IRA employee deferrals are only reported as Box 12 Code S.

Employer contributions for a SIMPLE IRA plan are not reported on a W-2 anywhere.
Thank you so much. How they put in my W-2 did not make sense to me even without knowing what each code means.
I will go back to HR.

Katietsu
Posts: 2895
Joined: Sun Sep 22, 2013 1:48 am

Re: Wrong code and amount on W-2 for Simple IRA?

Post by Katietsu » Thu Feb 13, 2020 3:13 pm

So the reality is that $7182 was contributed from your earnings and $2281 was an employer contribution? Have you confirmed this with your own records? It is probably accurate but given the other oddities, I would verify this before talking to HR again.

Post Reply