My spouse is the sole proprietor of an LLC and I am his part-time employee. The LLC makes annual contributions to my SEP-IRA. I’ve always handled the W-2 as follows: I check "Retirement plan" in box 13, but I do not record the contribution amount. Is this correct?

ANSWER

The BIDaWIZ Team's Answer:

If the contributions are made exclusively by the LLC, then rest assured that it is being reported properly on the W-2 form. No contribution amount is to be disclosed in this case. It's only to be disclosed when it's part of a salary reduction arrangement. Are these contributions you are making or are they part of an elective salary reduction arrangement? If they are elective deferrals, then you must include them in the "Social security wages" and "Medicare wages and tips" boxes. In addition, you must also include them in box 12. You would also check box 13 for retirement plan as you have been doing in the past. This is referenced in IRS Publication 560 as detailed here.