Question

when filling out a W-2, do I put anywhere a SIMPLE retirement amount?

Answer 1

Note that contribution to employee's simple IRA is made by both employee as well as employer . Following are the treatment for the different amounts

1 . Non elective contribution made by employer to the employee simple IRA is not liable for federal income taxes hence not to be included in form W-2.

2. Amount which is withheld from employee's pay for contribution to employee simple IRA is also not subject to federal income taxes and hence not to be included in box 1 of form W-2.

But they are subject to Medicare and social security taxes and hence to be included in box 3 (for social security) and box 5 (for Medicare.)

3 .