Where do I enter my 401(k) contribution?
Even though you are not taxed on the 401(k) contribution part of your income, the IRS still wants you to report the money so they can track it.
Generally contributions to your 401(k) retirement plan show up in box 12 of your W-2 form.
If you are manually entering your W-2 information into TurboTax, find Box 12 Letter Code D - Elective Deferrals to 401(k) and enter the contribution amount to the right.
Below that, in Box 13, select the Retirement Plan checkbox.
You can get to the W-2 section in TurboTax by clicking the Federal Taxes tab, then select Wages & Income, Select Specific Topics, Wages and Salaries.
Are my 401(k) contributions taxed?
Your 401(k) contributions are known as "pre-tax" contributions.
The money is taken out of your income before determining your taxable income.
Therefore, 401(k) contributions reduce your taxable income and usually reduce your taxes for the year that you make the contribution.
Why doesn't my 401(k) count as a deduction/or lower my taxes?
401(k) contributions are not counted as taxable income and therefore typicall reduce your current year tax.
