Reporting 401(a) Contributions on W2

[mlauer98]

My wife works for a county organization in Minnesota. She pays into a PERA (Public Employees Retirement Assoc) account on a pre-tax basis. PERA is a 401(a) retirement plan. On her W2, the amount reported in box 1, wages & tips, is equal to her total gross income, including money she puts into the PERA account. In box 3, social security wages, and box 5, medicare wages, the amount shown is equal to her total gross income minus her PERA contributions.

For example, if my wife made $40,000 gross and contributed $3000 to the PERA account the boxes would be as follows:
As her current W2 shows, Box 1 - $40,000, Box 3 - $37,000, Box 5 - $37,000
How I understand it should be, Box 1 - $37,000, Box 3 - $40,000, Box 5 - $40,000.

From what I've read from the IRS, her W2 is incorrect. Can anybody confirm this and cite what IRS publication or document I can refer to?

 

[davew128]

I tend to agree with your conclusion but the people you should be asking are the ones that issued the W-2.

 

[LdiJ]

I tend to agree with your conclusion but the people you should be asking are the ones that issued the W-2.

I also tend to agree, but also recommend talking to the HR department where your wife works.

 

[mlauer98]

I also tend to agree, but also recommend talking to the HR department where your wife works.

There are only 2 employees where she works and the accounting is done outside the organization by a 72 year old lady. She tends to get defensive if you question her work, so I'd like to have proof in black-and-white that I can show her.

 

[davew128]

There are only 2 employees where she works and the accounting is done outside the organization by a 72 year old lady. She tends to get defensive if you question her work, so I'd like to have proof in black-and-white that I can show her.

Then you need to hire someone for that. If the accounting is done by an outside person who gets defensive and doesn't listen, perhaps the accounting relationship should be revisited.