U.S. · W-2 box 12
W-2 box 12 code E.
Your pre-tax 403(b) contributions, and what they do and do not change on the return.
Code E is the amount you deferred into a 403(b) plan through a salary reduction agreement. It is left out of box 1, still counted in boxes 3 and 5, and shares the $24,500 2026 limit with your other plan deferrals. A Roth 403(b) is a different code: BB.
Check your code E amount
Result
What code E means
IRS description: Code E: Elective deferrals under a section 403(b) salary reduction agreement.
A 403(b) is the retirement plan the IRS names for annuity contracts and custodial accounts under section 403(b), and code E is how your employer tells you how much of your own pay went into it. Like every deferral code, it only reports the pay you did not receive because you elected to defer. Contributions your employer makes on its own, and any after-tax voluntary contributions, are not code E. The IRS lets employers list those in box 14, never in box 12.
Code E is for pre-tax money. If your 403(b) accepts designated Roth contributions, that money is reported under code BB instead, and the IRS specifically says not to use BB for pre-tax elective deferrals. If you see both on the same W-2, you split your contribution between the two types.
Where code E shows up on your W-2 and return
- Box 1: not included. The deferred amount is excluded from taxable wages.
- Boxes 3 and 5: included. The IRS lists code E among the deferrals that are reported in box 3 "even though the deferrals are not includible in box 1."
- Box 13: the "Retirement plan" box is for active participants, and the IRS list of qualifying plans includes a 403(b) annuity contract or custodial account.
- Form 1040: no entry for a normal deferral. The deferral cannot be deducted separately because it was never in box 1.
Worked example
Priya, a school employee, earns $52,000 and defers $3,120. Box 12 shows E 3120.00. Box 1 is $52,000 − $3,120 = $48,880. Boxes 3 and 5 are $52,000 (assuming no other pay-reducing benefits). Priya uses the $48,880 on her return and the $3,120 is counted toward her 2026 limit of $24,500, which she can add to if she has another 403(b), 401(k) or governmental 457(b) elsewhere.
Limits and what to check
The IRS says the 2026 contribution limit for 403(b) plans is $24,500, with a catch-up of $8,000 for age 50 and over and $11,250 for ages 60 to 63 under SECURE 2.0 (IRS news release, read November 1, 2026). The 2025 Form 1040 instructions add that some 403(b) participants who qualify for the 15-year rule described in Publication 571 may be allowed a higher limit, so ask your plan administrator before assuming you are capped. The limit counts every elective deferral you make across employers and also your Roth contributions. A total above the limit is an excess deferral, which the plan can return with earnings.
Common mistakes
- Putting code E and code BB money in the same bucket. E is pre-tax and out of box 1; BB is Roth and in box 1.
- Expecting E to include a school district or hospital match. Matching money is not part of box 12.
- Forgetting a 401(k) at another job. Deferrals under D, E and G count toward one 2026 limit for you.
- Reading box 3 as a typo. It is higher than box 1 by about the code E amount, by design.
See every code in one searchable table on the W-2 box 12 codes lookup.
Sources
Primary sources opened on November 1, 2026. The plain-English parts of this page are our summary of them, not IRS guidance.
- IRS, General Instructions for Forms W-2 and W-3 (2026), Box 12, Codes (read 2026-11-01): code E and BB definitions and the box 3 rule
- IRS news release: 401(k) limit increases to $24,500 for 2026 (read 2026-11-01): 2026 limits for 403(b) plans and catch-up amounts
- IRS, Instructions for Form 1040 (2025 edition, latest read): excess elective deferrals (read 2026-11-01): excess deferrals and the 403(b) 15-year rule reference
Frequently asked questions
What does code E mean on a W-2?
Code E reports your elective deferrals under a section 403(b) salary reduction agreement. In plain terms, it is the pay you put into your 403(b) before income tax.
Is code E the same as code BB?
No. Code E is pre-tax and is not in box 1. Code BB is a designated Roth contribution to a 403(b), which is made after tax and stays in box 1.
Does the code E amount lower my box 1 wages?
Yes. Deferrals reported with code E have already been excluded from box 1. They are still included in boxes 3 and 5.
What is the 403(b) limit for 2026?
$24,500, plus $8,000 catch-up at age 50 and over or $11,250 at ages 60 to 63. Some people who qualify for the 15-year rule may be allowed more, so ask the plan.
Do I report code E on my tax return?
Not for a normal deferral. You use box 1 on Form 1040. You only act on code E if your combined deferrals for the year exceeded the limit.
Does my employer's contribution show in code E?
No. Code E is only your elective deferral. Employer contributions are not reported in box 12.
Not tax advice
This page summarizes IRS instructions written for employers and is not tax advice. Your payroll provider, plan administrator or a tax professional can confirm what a code means on your own form. Everything runs in your browser; nothing you enter is sent anywhere.