What Does Box 12 Code Y Mean on a W-2?
Deferrals under a 409A nonqualified deferred compensation plan. What it means, whether it is taxable, and what to do with it.
By the Easy Guides Editorial Team · Updated for 2026
Box 12 Code Y is deferrals under a 409a nonqualified deferred compensation plan.
What Code Y means
Money you deferred under a section 409A nonqualified deferred compensation plan.
Does Code Y affect my taxes?
Informational. Deferrals are not taxed now, they are taxed when paid out later.
What to do about it
Nothing at filing time, as long as the plan complies with section 409A. If it does not, the amount shows as Code Z instead.
Where to find Code Y on your W-2
Look at box 12, in the middle-right of the form. It has up to four lines, labelled 12a, 12b, 12c and 12d. Those letters are only line labels. The code you want is the small letter or pair of letters printed next to the amount, and it will read Y. If you have more than four entries, your employer issues a second W-2 to carry the rest.
Not the code you were looking for? The full box 12 code list covers every letter, and the W-2 box decoder explains every box on the form.