An update is now available for automatically compiling ROTH 401(k) employee contributions on W-2 records. Previously, users could manually update this information through the Edit W-2 Information window. The new tool will automate this process.
Use Check for Updates to download the latest version of Datatech software with this new feature.
Do you need to include ROTH 401(k) contributions on your W-2's?
Depending on the type of ROTH plan, you may need to include the contributions on W-2’s. See the W-2 Instructions, page 30, for instructions on Boxes 12 & 13. There is specific information on which codes to use for different types of ROTH plans. If you are not sure what type of ROTH plan you have, consult your retirement plan provider.
At this time, we have only added code AA for a ROTH 401(k) plan. Please let us know if you have a plan that requires an alternate code.
We have confirmed that contributions to the CalSavers ROTH plan DOES NOT need to be printed on W-2’s. The CalSavers administration will send employees Form 5498 with their IRA Contribution information.
Instructions to Compile ROTH deductions on W-2 Records
Step 1
Define your deduction in the Box 12 Code (Payroll > Setup > Miscellaneous Deductions).
On any deductions that fall into the ROTH 401(k) type, select the respective W-2 Box 12 Code:
Step 2
Compile total deductions for W-2.
From either your Payroll Tax Reports Control Center or the Edit YTD Archive File, go to the Edit W-2 Information window.
Click on the Compile Roth 401(k) button. Amounts will be calculated and populate the Roth Contr 401K column. You can more easily review this information by clicking on the Select Columns button and select just the columns you want displayed.
You can edit these amounts if needed.
As mentioned above, Datatech personnel cannot advise you on your particular plan rules. If you have any questions on how to use the program functions, please email our team at Support@DatatechAg.com.