Question

Should the retirement plan box be checked on a W2 even if I have been retired from the company more than 3 years and exercised stock options in retirement?

Exercised options in 2024. W2 shows the withholding of taxes but the retirement plan box is checked.

No.

Stock options are not a retirement plan. And you should not have box 13 checked for retirement plan for exercise of your stock options.

See chart on page 31 of this IRS document.

You may want to reach out to your previous employer for a correction if this hinders your ability to contribute to an IRA or Roth IRA.

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Thanks! I also receive a company pension. Would that trigger the box to be checked?

No.

Per IRS: Employer should check the retirement plan box if an employee was an "active participant" for any part of the year in:

a qualified pension, profit-sharing, or stock-bonus plan under Internal Revenue Code Section 401(a) (including a 401(k) plan).
an annuity plan under IRC Section 403(a).
an annuity contract or custodial account under IRC Section 403(b).
a simplified employee pension (SEP) under IRC Section 408(k).
a SIMPLE retirement account under IRC Section 408(p).
a trust described in IRC Section 501(c)(18).
a plan for federal, state, or local government employees or by an agency or instrumentality thereof (other than a 457(b) plan).

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