I have a part time job with a public school system and a few years ago in lieu of continuing in the pension system I opted to have the employer contribute an equivalent of 4% of my gross pay to a 401k plan. The amount of this contribution is showing up on line 12 with the code of D, which suggests it’s an employee elective deferral, but that shouldn’t be correct, it should be an employer contribution.
I’m concerned because I have a self-employed business where I max out my elective deferral in my own solo 401k plan. So this line 12 Code D on the w-2 eats into my maxing out my own business 401k employee deduction.
Not sure what to do here. When I look at my pay stub, the 4% contribution is listed under “employer paid taxes and benefits.” When I open up the Voya administered website for the 401k plan, it says the source is “employer mandatory 4%”, and it says it is vested 100%. When I generate a statement for this 401k it lists these 4% contributions only as employer contributions, 0 employee contributions.
My CPA who is doing my taxes is giving me a hard time about this – he says I can’t make a 24,000 employee contribution to self-employed 401k plan (over 50 here) and simultaneously have an additional amount listed on line 12, code D.
