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Posted

Participant W2 as follows:

boxes 1,3,5   53,140.23

Roth deferral   1,840   

Is not the Roth deferral contained in the above?? 

Accountant adding the Roth deferral to the above.

Plan definition of compensation W-2 plus all deferrals.

Which calc is correct?

Posted
6 hours ago, thepensionmaven said:

Participant W2 as follows:

boxes 1,3,5   53,140.23

Roth deferral   1,840   

Is not the Roth deferral contained in the above?? 

Accountant adding the Roth deferral to the above.

Plan definition of compensation W-2 plus all deferrals.

Which calc is correct?

The Roth deferral is after tax (we all know that). The income that was deferred was paid to the employee in his paycheck and then deferred; therefore, it needs to be in the taxable income reporting in box 1, 3, 5.  

Are you saying that the accountant it double counting the Roth contribution somewhere (where?) by adding that amount AGAIN to the stated amounts in Box 1?

Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC
President
Qualified Plan Consultants, Inc.
46 Daggett Drive
West Springfield, MA 01089
413-736-2066
larrystarr@qpc-inc.com

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