What this line means
Your elective deferrals to employer-sponsored retirement plans during the tax year. 1 This includes contributions to a 401(k), 403(b), governmental 457(b), Thrift Savings Plan (TSP), SIMPLE IRA, or SIMPLE 401(k). These are the amounts you chose to have withheld from your paycheck and directed into your retirement account. Employer matching contributions do not go here — only your own deferrals count.
Does this apply to you?
- You contributed to a 401(k), 403(b), governmental 457(b), or TSP through payroll deductions
- You made salary reduction contributions to a SIMPLE IRA or SIMPLE 401(k)
- You are filing Form 8880 to claim the Saver’s Credit for your workplace retirement contributions
Easy to overlook
Voluntary after-tax contributions to employer plans count If your plan allows voluntary after-tax contributions (separate from Roth 401(k) contributions), those count on line 2 as well. 2 Filers who make after-tax contributions beyond the regular deferral limit sometimes assume only the pre-tax portion qualifies. Both pre-tax and designated Roth elective deferrals are eligible. IRS Form 8880 instructions — line 2 elective deferrals
SIMPLE IRA deferrals belong here, not on line 1 A SIMPLE IRA is technically an IRA, but salary reduction contributions to a SIMPLE go on line 2 with other employer-plan deferrals — not on line 1 with traditional/Roth IRA contributions. 3 Putting SIMPLE deferrals on the wrong line does not change the total, but it confuses the form and can trigger review questions. IRS Publication 560 — Retirement Plans for Small Business
Watch out for this
Confusing the amount on your W-2 box 12 code D (or similar codes) with your total plan balance growth. Box 12 shows only your elective deferrals for the year. It does not include employer matches, plan earnings, or loan repayments. Enter the deferral amount from your W-2, not a number from your plan statement.
Footnotes
-
IRS Form 8880 Instructions, Line 2. https://www.irs.gov/instructions/i8880 ↩
-
IRS Form 8880 Instructions, Elective Deferrals. https://www.irs.gov/instructions/i8880 ↩
-
IRS Publication 560, SIMPLE Plans. https://www.irs.gov/publications/p560 ↩