Final answer:
W-2 Box 12 code for a 403(b) plan is Code E, which denotes elective deferrals under a Section 403(b) salary reduction agreement for employees of public schools and certain tax-exempt organizations.
Step-by-step explanation:
The correct W-2 Box 12 code used for a 403(b) plan is Code E. For American taxpayers, the Internal Revenue Service most frequently uses the W-2 form. This is a tax statement that details the taxes deducted from your taxable wages, which may include state, federal, and municipal taxes withheld.
The W-2 tax form uses various codes in Box 12 to report different types of compensations and benefits. Code E specifically denotes elective deferrals under a Section 403(b) salary reduction agreement. These deferrals are contributions made under a retirement plan for employees of public schools and certain tax-exempt organizations.