Solopreneur 401k FAQ – Where do I report my Roth Solo 401k employee contributions on my W-2?

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If you are a solopreneur and are considering setting up a Roth Solo 401(k) plan, you may have questions about how to report your contributions on your W-2. This article will answer some of the most frequently asked questions (FAQs) about Roth Solo 401(k) reporting.

What is a Roth Solo 401(k)?

A Roth Solo 401(k) is a retirement savings plan that is designed for self-employed individuals and small business owners. It is similar to a traditional 401(k) plan, but it has some additional tax advantages. Contributions to a Roth Solo 401(k) are made with after-tax dollars, which means that the contributions are not tax deductible. However, the money in a Roth Solo 401(k) grows tax-free, and withdrawals are tax-free in retirement.

Where do I report my Roth Solo 401(k) employee contributions on my W-2?

Employee contributions to a Roth Solo 401(k) plan should be reported on your W-2 in box 12 with code “W.” This code indicates that the contributions are for a Roth Solo 401(k) plan.

Do I need to report my Roth Solo 401(k) contributions on my tax return?

No, you do not need to report your Roth Solo 401(k) contributions on your tax return. Since the contributions are made with after-tax dollars, they are not tax deductible and do not need to be reported.

Do I need to report my Roth Solo 401(k) employer contributions on my W-2?

Yes, employer contributions to a Roth Solo 401(k) plan should be reported on your W-2 in box 12 with code “E.” This code indicates that the contributions are for a Roth Solo 401(k) plan.

Do I need to report my Roth Solo 401(k) employer contributions on my tax return?

No, employer contributions to a Roth Solo 401(k) plan are not tax deductible and do not need to be reported on your tax return.

Conclusion

If you are a solopreneur and are considering setting up a Roth Solo 401(k) plan, it is important to understand how to report your contributions on your W-2 and tax return. Employee contributions should be reported on your W-2 in box 12 with code “W,” and employer contributions should be reported on your W-2 in box 12 with code “E.” Neither employee nor employer contributions need to be reported on your tax return.