Thank you @DavidD66 for your reply.
Let me add a few details about my situation:
1. I deferred part of my compensation in tax years 2017, 2018, and 2019. I expected to get three corresponding payments in later years.
2. I got payments in tax years 2022 and 2023 that were apparently correct.
3. In tax year 2023, the plan administrator discovered that the third payment should have been made in tax year 2020 ad was missed. They made the payment in tax year 2023 and issued the 2023 W2 with code Z in box 12 with the amount of the third (missed) payment.
Given the above:
1. Did the 409(A) violations occur in tax year 2020 or 2023?
2. Section 409(A) says all deferred income becomes immediately taxable on violation. Do I need recompute and re-file my taxes for 2017, 2018, and 2019, or even 2020? Or for the open tax years?
3. How about the premium interest tax mentioned in section 409(A)? Do I compute it for the years above?
4. Or did the violation only occur in 2023, all deferred income was already included in income, and so I should only do the 20% penalty for the third (missed) payment and perhaps the premium interest tax for year 2023?
Thanks a lot in advance!
