While entering the W-2 info from my previous employer for installment payments of a NQ executive deferred compensation (SERP) Turbo Tax asked
Did you take money out of your nonqualified pension plan?
We just need to check whether the $XXX,635.09 in box 11 is money you contributed to your plan, or if it's money you took out of your plan.
Yes, I took this money out of my nonqualified or Section 457 plan.
No, this is money I contributed to my nonqualified or Section 457 plan.
This IS money I contributed while I was working and it also IS a monthly installment being paid out of my NQ deferred compensation plan. If I check the Yes option, the Income Summary page shows the income on the "Other Income or Loss" line. If I check the No option, the income shows on the "Wages and Salaries" line. Either way does not change my federal taxes but there must be a “correct” way to answer this question and the answer may effect my Montana state taxes. I searched here and found what seem to be conflicting answers to basically the same question:
BillM223 Employee Tax Expert
If he is receiving money quarterly from the plan, then you answer, "Yes, I took money out of this nonqualified or Section 457 plan".. ______________________________________________________________________________
DMarkM1 Employee Tax Expert
... enter your W2 exactly as shown on your form. When you arrive at the follow on question asking "Did you take money out of a nonqualified pension plan?" You should answer "NO" that will leave the money on line 1a and not create the schedule 1 line 8t entry.
Which is correct?
