W-2 Box 12 Code G indicates contributions to which type of plan?

Box 12 Code G on the W-2 form specifically indicates contributions made to a 457(b) plan, which is a type of deferred compensation plan available for certain employees of state and local governments, as well as some non-profit organizations. This code is used to report contributions that are deducted from the employee’s pay before federal income tax is calculated, allowing for tax-deferred growth until withdrawals are made.

In this context, it is important to differentiate between the various plans. For example, 401(k) plans and SIMPLE IRAs have their own distinct reporting codes—Code D is used for 401(k) contributions, while Code S is designated for SIMPLE IRA contributions. Health reimbursement arrangements are also not reported with Code G but have their own reporting requirements, often under a different section altogether. Understanding these codes ensures accurate reporting of contributions and benefits associated with different retirement and health plans on tax returns.