Enter the total amount you paid to your (and, if you are married, your spouse’s) tax–deferred pension and retirement savings plans (paid directly or withheld from your earnings). These amounts are reported on the W-2 form in boxes 12a through 12d, codes D, E, F, G, H, and S.
In this manner, what does tax-deferred pension mean?
Tax–deferred accounts allow you to realize immediate tax deductions up to the full amount of your contribution, but future withdrawals from the account will be taxed at your ordinary-income rate. The most common tax–deferred retirement accounts in the United States are traditional IRAs and 401(k) plans.
Your contributions to a tax–deferred pension plan escape being taxed in the year you make the contributions. However, your contributions aren’t exempt from payroll taxes: Social Security tax and Medicare tax still apply.
Also, what does tax-deferred mean when it comes to 401k?
In simple terms, “tax–deferred” means that you get to pay taxes later (in another year) rather than right now. … The main tax–deferred retirement accounts are the 401 (k) and the Individual Retirement Account (IRA). A 401(k) is a retirement savings plan offered to you through your work and managed by your employer.