Which W-2 Box 12 Code indicates contributions under a SIMPLE plan?

The correct indication for contributions made under a SIMPLE (Savings Incentive Match Plan for Employees) plan is represented by Code S in Box 12 of the W-2 form. This specific code is used to report the amount of employee salary reduction contributions made to a SIMPLE IRA plan. It helps both the employee and the IRS to identify that the contributions are made under a specific retirement savings plan, which has unique tax benefits, including tax deferral on investment gains and contributions.

Understanding the context of the other codes can help clarify why Code S is the relevant answer here. Code Q, for instance, refers to distributions from a Roth IRA, which is unrelated to the SIMPLE plan contributions. Code T is used for the adoption benefits, and Code W is for contributions to a Health Savings Account. All of these codes serve different purposes and generally represent different types of benefits or contributions that do not pertain to the SIMPLE plan. By focusing on the specific tax implications and reporting requirements of each code, it becomes clear why Code S is the correct choice for SIMPLE plan contributions.