"Retirement Plan" Box on Form W-2

[Guest notapensiongeek]

We administer a calendar year 401(k) profit sharing plan, and for plan years 2011 & 2012 there are no employer contributions or forfeitures allocated to participant accounts. It is our understanding that under this arrangement, if the owner elected not to make 401(k) deferrals for 2012, the "Retirement Plan" box checked on his/her 2012 Form W-2 is not checked.

Is this correct?

Thanks for your input!

[ETA Consulting LLC]

You are correct.

Good Luck!

[Guest notapensiongeek]

What if the owner makes a catch-up contribution? Is it considered an "employee contribution", even though it's not an annual addition?

[masteff]

What if the owner makes a catch-up contribution? Is it considered an "employee contribution", even though it's not an annual addition?

From IRS Notice 87-16:

"A13: If only a single dollar is allocated to an individual's account for a plan year (in a defined contribution plan), or an individual accrues a benefit of only one dollar for a plan year (in a defined benefit plan), is such an individual an active pa rticipant in such plan?

A: Yes"