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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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how is a Simple IRA reported on the W2s

Customer Question

when reporting the Simple IRA - what box in the W2's form is this Simple IRA reported on and also does the Simple IRA reduces the wages in box 1 of the W2's, but the fica and medicare stays as the actual payroll wages for the year?

Optional Information:
Long Beach, California

Already Tried:
nothing I'm just very curious about this simple IRA.

Submitted: 11 years ago.
Category: Tax
Expert:  RD replied 11 years ago.
Yes, you are right.
Do not include SIMPLE IRA plan contributions in the “Wages, tips, other compensation box”(box 1) of Form W-2. However, salary reduction contributions must be included in the boxes for social security and Medicare wages.
Also include the code "S" in box 12 and the amount of employee contribution to Simple IRA in Box 12.