Secure 2.0 Affects Form W-2 Reporting, IRS Official Says

Employer and employee contributions to Roth individual retirement arrangements have different tax reporting requirements, an Internal Revenue Service official said July 11.

The SECURE 2.0 Act allows employees to have their salary reduction contributions deposited into a Roth IRA instead of a traditional IRA, and these amounts are subject to withholding for federal income tax, unemployment tax, and Social Security and Medicare taxes, the official said. The contributions should be reported in Boxes 1, 3, and 5 of Form W-2, Wage and Tax Statement.

Employer matching or nonelective contributions to Roth IRAs are not subject to federal tax withholding, she ...