The Retirement Plan box on the Form W‐2 will be automatically checked if you have any plan funded via payroll deductions (401(k), 403b, etc.) You can review your employee population for this indicator in HCM by running the Employees without Active Retirement Plans (Box 13) report in Business Intelligence under the NEW Quarter & Year End Balancing folder. If you have employees not contributing to a plan through HCM who need to have this box checked on their Form W‐2, please submit the list of employees on the report to be corrected to firstname.lastname@example.org
Form W-2, Box 13
The “Retirement plan” indicator in Box 13 shows whether an employee is an active participant in your company’s plan. If this box is checked, it lets the recipient know that depending on their filing status and modified adjusted gross income, they may not be entitled to a full deduction for their traditional IRA contributions. You should check the retirement plan box if an employee was an “active participant” for any part of the year in:
- a qualified pension, profit-sharing, or stock-bonus plan under Internal Revenue Code Section 401(a) (including a 401(k) plan).
- an annuity plan under IRC Section 403(a).
- an annuity contract or custodial account under IRC Section 403(b).
- a simplified employee pension (SEP) under IRC Section 408(k).
- a SIMPLE retirement account under IRC Section 408(p).
- a trust described in IRC Section 501(c)(18).
- a plan for federal, state, or local government employees or by an agency or instrumentality thereof (other than a 457(b) plan).
Generally, an employee is an active participant if covered by a:
- defined contribution plan (for example, a 401(k) plan) for any tax year and is credited with any contributions or forfeitures, or
- defined benefit plan for any tax year that the employee is eligible to participate.
Don’t check the retirement plan box if your company only has non-qualified or 457(b) plans.