Final answer:
BOX 12 CODE "Designated Roth contributions under a governmental 457(b) plan" on a W-2 indicates contributions to a specific type of governmental retirement plan made with after-tax dollars.
Step-by-step explanation:
On a W-2 form, BOX 12 CODE "Designated Roth contributions under a governmental 457(b) plan" signifies contributions to a governmental retirement plan. This indicates that the employee has contributed to a Roth account within a 457(b) plan, which is a type of defined contribution plan specific to government and certain non-profit employees.
Unlike traditional 401(k) or 403(b) plans, these contributions are made with after-tax dollars, and distributions during retirement may be tax-free if certain conditions are met.