W-2 box 12 code G.

What code G means

IRS description: Code G: Elective deferrals and employer contributions (including nonelective deferrals) to any governmental or nongovernmental section 457(b) deferred compensation plan.

This is the one deferral code the IRS defines as a blend. For codes D, E, F and S, the instructions say to report only the employee's elective deferrals. For code G they say to include "both elective and nonelective deferrals." The result is that a city employee who defers $10,000 while the employer adds $2,000 sees G 12000.00, and nothing on the W-2 splits the two parts. If you need the split, ask the plan administrator for your contribution statement.

The IRS also tells employers not to report either 457(b) or 457(f) amounts that are subject to a substantial risk of forfeiture. Money that is still forfeitable if you leave is not in code G yet. A governmental plan that offers designated Roth contributions reports those under code EE, and the instructions say not to use EE for elective deferrals under G.

Where code G shows up on your W-2 and return

• Box 1: the deferral is excluded from taxable wages in a governmental 457(b), the same as other deferral codes.
• Boxes 3 and 5: included. The IRS lists code G with D, E, F and S as deferrals reported in box 3 even though they are out of box 1.
• Box 13: this is the odd one. The IRS says not to check the "Retirement plan" box for contributions to a nonqualified or section 457(b) plan, so box 13 may be blank on a W-2 with code G.
• Distributions later: the IRS says distributions from 457(b) plans of state and local agencies are generally reported on Form 1099-R, not on a W-2.

Worked example

A city employee defers $10,000 and the city adds $2,000. Box 12 shows G 12000.00. Box 1 is lower than gross pay by the $10,000 you deferred, because the city's $2,000 was never part of your pay. Only the $10,000 is your elective deferral for the $24,500 limit. The $2,000 is not, so the G total of $12,000 says nothing about whether you hit the limit.

Limits and what to check

The IRS news release lists governmental 457 plans with the 401(k) and 403(b) at $24,500 for 2026, with the same $8,000 catch-up for 50 and over and $11,250 at ages 60 to 63. The 2025 Form 1040 instructions note a special higher limit may apply to 457(b) participants in the three years before retirement age, so it is worth asking the plan. Because code G blends your deferral with employer money, do not compare the G figure to the limit directly. Use your own deferral from the plan statement, add any D or E amounts from other jobs, and compare that to the limit. In a nongovernmental 457(b), amounts that stop being forfeitable are reported in boxes 3 and 5 when they vest, which is a different timing from governmental plans.

Common mistakes

• Comparing the whole G figure to $24,500. It includes employer money that does not count toward your deferral limit.
• Expecting the "Retirement plan" box 13 to be checked. The IRS says not to check it for 457(b) contributions.
• Confusing G with a 401(k). Code D is 401(k); G is 457(b).
• Ignoring pre-tax and Roth amounts from another employer. Your deferral limit is combined.

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 G definition, the forfeiture rule, box 3 and box 13 treatment
• IRS news release: 401(k) limit increases to $24,500 for 2026 (read 2026-11-01): 2026 limit for governmental 457 plans
• IRS, Instructions for Form 1040 (2025 edition, latest read): excess elective deferrals (read 2026-11-01): higher limit near retirement age