Updated September 29, 2026. Quick answer: code E in Box 12 is the amount you deferred from your pay into a 403(b) plan under a salary reduction agreement. It works like code D does for a 401(k): reported in Box 12, left out of Box 1, counted in Box 3.
What the IRS tells the employer
The instructions define code E as “Elective deferrals under a section 403(b) salary reduction agreement.”
The rule that covers codes D through H
The instructions say to use these codes “to show elective deferrals and designated Roth contributions made to the plans listed.” and add “Do not report amounts for other types of plans.” They also explain what the amount is: “The amount reported as elective deferrals and designated Roth contributions is only the part of the employee’s salary (or other compensation) that they did not receive because of the deferrals or designated Roth contributions.”
Where it shows up on the other boxes
Box 1 leaves elective deferrals out, and box 3 includes them: the Box 3 instruction lists “(codes D, E, F, G, and S)” as deferrals reported in box 3 even though they are not includible in box 1. See the Box 12 vs Box 1 and Box 3 page for the full comparison.
If your 403(b) contributions were Roth
Roth contributions to a 403(b) are not code E. The instruction for code BB reads: “Do not use this code to report elective deferrals under code E.”
Common mistakes
- Reading code E as a 401(k) figure. 401(k) elective deferrals are code D.
- Assuming the amount is added to Box 1. The Box 1 instruction excludes elective deferrals such as employee contributions to a 403(b) plan.
Related: code D, code BB, code G, code H, and the 403(b) contribution limit.
Every code in one place: the Box 12 codes table. If a withdrawal from one of these accounts is your question, see the Form 1099-R Box 7 codes.
Figures verified against the IRS 2026 General Instructions for Forms W-2 and W-3 on September 30, 2026.
Sources
- IRS, 2026 General Instructions for Forms W-2 and W-3: https://www.irs.gov/pub/irs-pdf/iw2w3.pdf
- IRS, About Form W-2, Wage and Tax Statement: https://www.irs.gov/forms-pubs/about-form-w-2
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How our partner relationships workCode meanings are read from the IRS 2026 General Instructions for Forms W-2 and W-3 (Box 12) at irs.gov on September 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a payroll professional, a preparer or the IRS is the right place to confirm anything consequential.