October 27, 2008

Form W-2 Reporting for Roth Contributions in a 403(b) plan

Question:

How does a church report designated Roth contributions on its pastor's Form W-2?

Answer:

According to the IRS instructions for 2008 Form W-2, Roth contributions withheld from the pastor's pay do not reduce Box 1--Wages, tips, other compensation. The amount of the contributions should be recorded in Box 12, using code BB. Also, the Retirement Plan option in Box 13 should be checked.

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