SECURE 2.0 Changes W-2 and 1099 Reporting Obligations for 2024

Both employers and employees should note that with the changes brought about by the SECURE Act 2.0, their W-2 and 1099 reporting obligations may have changed.  Salary reduction contributions to an individual's Roth SEP IRA or Roth SIMPLE IRA should generally be included on the individual's Form W-2 in boxes 1, 3, and 5. These contributions should also be reported in box 12 with code F (for a SEP contribution) or code S (for a SIMPLE IRA contribution).  Employers who provide de minimis financial incentives to employees who participate in retirement plans should also note that those amounts may be taxable unless another exemption exists.  Employer matches and non-elective contributions to Roth SEP IRAs and Roth SIMPLE IRAs are reported on the taxpayer's Form 1099-R for the year.  Designated Roth non-elective and matching contributions to qualified plans are also reported on Form 1099-R.   For more information on the rules governing employer contributions to retirement accounts, visit Tax Facts Online. Read More: Link to Q3707.