How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Christopher Phelps Your Own Question

Christopher Phelps
Christopher Phelps, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2710
Experience:  CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member
Type Your Tax Question Here...
Christopher Phelps is online now
A new question is answered every 9 seconds

IRC 414h and IRC125 in W2 Box 14.

Customer Question

When are items in w2 box 14 "IRC414h" and "IRC125" taxable and when are they non-taxable?
Submitted: 10 years ago.
Category: Tax
Expert:  Christopher Phelps replied 10 years ago.

Items are placed in box 14 by your employer to provide you with additional information about various components of your pay.

The IRC 125 probably refers to pre-tax contributions you made to your employer's plan for dependent child care reimbursement plan or a medical reimbursement plan or both. This information may be necessary for the preparation of your tax return. Any child care paid for out of this account may not be used to claim a dependent child care credit. Likewise, medical expenses paid out of a 125 account may not be deducted on Schedule A.

The IRC 414h refers to amounts contributed to your pension plan, 457 plan, 401(k) or 403(b) plan by your employer as being designated "employee contributions". These amounts may refer to nonelective employer contributions made on your behalf; after-tax contributions made by you; required employee contributions made by you and/or employer matching contributions. These amounts are for your information only and do not require any entries on your part in your tax return.

For more information I suggest you contact your human resources department for a further explanation.

Customer: replied 10 years ago.
Reply to Christopher Phelps's Post: TYhis does not answer my question. My question was: When are these items taxable? (Federal and or State.)
Expert:  Christopher Phelps replied 10 years ago.

It would be helpful if based on my previous answer you could give me your best guess as to what the amounts represent. Did you contribute to a 125 plan (you may have also heard the term cafeteria plan) for dependent child care reimbursement or medical reimbursement? Do you participate in a retirement plan (what type) in which your employer makes contributions for you?

If the items are taxable they would also be included in box 1 of your W-2.

With respect to the IRC 125 such contributions are generally made on a pre-tax basis. You withdraw the funds when you apply to the plan administrator for reimbursement. To the extent you use the funds for the intended purpose, they will not be taxable. Likewise, if you pay for tax deductible expenses with these pre-tax dollars, you may not take the deduction for the amount reimbursed.

The IRC 414h item will generally not be taxable until you withdraw it from your pension plan.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
< Last | Next >
  • Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
  • Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    15+ years tax preparation and tax advice.
  • Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • Richard's Avatar


    Tax Attorney

    Satisfied Customers:

    29 years of experience as a tax, real estate, and business attorney.
  • jgordosea's Avatar


    Enrolled Agent

    Satisfied Customers:

    I've prepared all types of taxes since 1987.
  • MequonCPA's Avatar


    Certified Public Accountant (CPA)

    Satisfied Customers:

    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.
  • R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    Over 20 Years experience