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Client received W2 with entries in box 14 IRC 414H and IRC 125

Anna11
Level 1

Client received W2 with entries in box 14 IRC 414H and IRC 125. I am not sure where to enter the, it's my understanding that they should be taxable

Thank you in advance

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4 Comments 4
sjrcpa
Level 15

Box 14 is informational.

125 Plan contributions are not taxable. Nor are 414(h) contributions.


Ex-AllStar
qbteachmt
Level 15

414h is instead of a 401k, and tells us this is a governmental employee. It is being reported because it is in a retirement account (trust) and will be taxed when taken. The only issue, as I recall, is whether it is considered employee or employer and subject to FICA, which should already have been computed and is part of that W2 already.

Box 14 is informational and neither of these is a separate entry for the 1040. A specific State might have some consideration for when they start taking that money, as a sourced income for retirement as taxed or not.

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PODW4444
Level 2

414 h contributions for a state employee in NJ     are deductible from federal wages pretax fed   ..

 

POST TAX NJ    meaning in future years when pension is received      taxable form 1040 ...excluded from nj   the contributions cost basis .

 

 

i had same question   re do we need to enter anywhere ?    answer is no   info purposes only ...

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qbteachmt
Level 15

"re do we need to enter anywhere ?"

Yes, enter the W2 info. No, don't enter the informational box info. It's already a subset of the main boxes, so it is already taken into consideration.

This is no different for any other W2. Box 14 is information. You would only enter that piece of info, if it matters somewhere. Example: tracking some sort of Basis, or a child care deduction, or clergy deductions that apply to their SE activities.

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"Level Up" is a gaming function, not a real life function.