What do W-2 Box 12 Code EE contributions pertain to?

W-2 Box 12 Code EE contributions refer specifically to designated Roth contributions made to a governmental section 457(b) plan. This code is used to identify contributions that are made on an after-tax basis to tax-deferred retirement plans that qualify under section 457(b) of the Internal Revenue Code. These contributions allow employees to save for retirement while also benefiting from tax-free withdrawals on qualified distributions.

Contributions labeled with Code EE in Box 12 indicate that these funds have already been taxed, meaning they will not be taxed again upon withdrawal in retirement, provided certain conditions are met. This makes them an attractive option for taxpayers looking to maximize their retirement savings with favorable tax treatment.

Additionally, this option distinguishes itself from the other choices, as Codes related to employer-sponsored health coverage, Individual Taxpayer Identification Numbers, or HIRE exempt wages do not apply to the context of Roth contributions under a section 457(b) plan. Thus, contributing through Code EE offers specific advantages related to retirement savings strategies for those eligible under such arrangements.