What is 414H on My W-2 Forms?
Employers issue W-2 forms annually to any employee paid wages in the previous year. W-2s provide information to employees about their earnings and deductions to assist them in income tax preparation.
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What's Reported on Form W-2?
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W-2s list an employee's taxable wages, taxes withheld and certain items included in, or deducted from, her gross wages to arrive at the taxable income amount. Common additions include taxable portions of life insurance premiums. Common deductions include retirement plan contributions and health insurance premiums.
What is a 414(h) Plan?
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A section 414(h) plan refers to a type of tax-deferred government retirement plan. Government employers with 414(h) plans mandate employee contributions, which the employer then "picks up." The employer does not deduct the contribution from the employee's wages, pays the contribution and excludes it from the employee's taxable income.
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Where is My 414(h) Reported on Form W-2?
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Section 414(h) retirement plan contributions are commonly reported in Box 14. Employers may use Box 14 to report certain employee benefits or deductions for informational purposes only. Depending on the nature of the item, an employee may utilize this information in his tax preparation.
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References
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