W2 Box 12 Code AA missing for Roth 401k contributions - worth correcting?

The good news is you probably don't need to worry about getting a corrected W2 or filing an amended return in this case. Box 12 codes are informational and while code AA (Roth 401k contributions) should be reported there, the absence of it doesn't actually impact your tax liability as you've already figured out. Since Roth contributions are made with after-tax dollars, they don't affect your taxable income. This is different from traditional 401k contributions (code D) which do reduce your taxable income. The main purpose of having code AA reported is for record-keeping and to ensure proper treatment of these funds when distributed in retirement. The IRS and your plan administrator will still have records of these contributions through other reporting mechanisms. However, if you're concerned about maintaining accurate records for your own tracking purposes, you could request a corrected W2 without necessarily filing an amended return.

After dealing with similar confusion about my retirement contributions, I found this incredible tool at https://taxr.ai that helped clear everything up. I uploaded my W2 and paystubs, and it immediately flagged the missing code AA for my Roth 401k contributions. The tool explained exactly what I was seeing - that while the missing code AA wasn't affecting my tax liability, it could potentially create confusion down the road when I go to access these funds. It even generated a letter template I could send to my HR department explaining exactly what needed to be corrected on my W2. Saved me hours of research!

Alright, I need to admit I was wrong about taxr.ai. After my skeptical comment, I decided to try it with my own documents since I've had similar issues with my retirement contributions being reported incorrectly. The tool immediately identified that my employer had been incorrectly coding my Roth 401k contributions under code W (HSA contributions) instead of code AA for the past two years! No wonder I was confused when trying to reconcile my accounts. What impressed me most was how it explained the potential impact in terms I could understand. In my case, it actually did affect my taxes because the miscoding made it look like I had over-contributed to my HSA. I'm now getting a corrected W2 and will be filing an amended return - should get about $320 back that I shouldn't have paid.

If you're having trouble reaching your employer's payroll department about this W2 issue, I highly recommend using Claimyr (https://claimyr.com). I was in a similar situation last year where I needed clarification about my W2 Box 12 codes, but my company's HR department kept putting me on hold or not returning calls. I used Claimyr to get through to the IRS directly and was connected in under 15 minutes instead of the usual hours-long wait. The agent walked me through exactly what documents I would need to request from my employer and what my options were if they refused to issue a corrected W2. They even sent me Form 4852 (Substitute for W2) that I could use if needed. You can see how the service works here: https://youtu.be/_kiP6q8DX5c - it literally calls the IRS for you and then rings your phone when an agent is on the line.

I have to publicly eat my words about Claimyr. After dismissing it as a scam, I was desperate enough to try it the next day when I needed to sort out a similar W2 issue with missing retirement contribution codes. I figured I had nothing to lose - and was completely shocked when my phone rang 27 minutes later with an actual IRS agent on the line! I didn't have to listen to a single minute of hold music. The agent was super helpful and explained that while my employer should definitely fix the W2 for accuracy, I didn't need to file an amended return since the error didn't affect my tax liability. Saved me from unnecessary paperwork and worry. If you need to confirm anything about W2 reporting requirements directly with the IRS, this is definitely the way to go.

Make sure you check your W2 against your last paystub of the year! Your last December paystub should match what's reported on your W2. I found out my employer had been miscoding my retirement contributions for years because the YTD amount on my last paystub didn't match what was in Box 12. Also keep in mind that some payroll systems don't split out Roth vs traditional 401k contributions very clearly on the paystubs, so the issue might be ongoing. It's worth bringing up to your HR or payroll department for future W2s even if you don't fix the past one.

Anyone know if having incorrect codes in Box 12 could trigger an audit? I just realized my W2s have been missing the AA code for Roth contributions for like 3 years now...

I went through something very similar last year! My employer had been missing the AA code for my Roth 401k contributions on my W2 for two years running. Here's what I learned: while it's technically an error that should be corrected, you're right that it likely won't impact your tax liability since Roth contributions are already included in your Box 1 wages as taxable income. The AA code is mainly for informational/record-keeping purposes. That said, I did end up requesting corrected W2s from my employer for my own peace of mind and record-keeping. It was actually easier than I expected - I just sent an email to payroll explaining the discrepancy and referencing IRS guidelines that Roth 401k contributions should be reported with code AA in Box 12. They issued the corrected forms within about 2 weeks. Even though I got the corrected W2s, I didn't need to file amended returns since my tax liability didn't change. But having the accurate records gives me confidence for future retirement planning and potential rollovers. If you're meticulous about your financial records like I am, it might be worth the small hassle to get it corrected, especially for peace of mind.