It is a non-qualified plan. Just enter it exactly as it appears and follow the interview questions.
Non Qualified money is “after tax” money.
When you invest outside of a “Qualified” plan, you do
not get to write off this investment on your taxes. Put simply, money invested
into Non Qualified plans will not get an upfront tax break.
Additionally, the investment earnings could be taxable each year. It all
depends on the type of investment you use.
For example, if you place your Non Qualified
investment dollars into a CD at the bank, you will have to pay tax on the
interest earnings every year. Each year, the bank will send you a 1099 tax form
showing you the amount of interest earned. You are required to pay taxes on
those earnings for that specific tax year. Note that you will have to pay a tax
on these earnings regardless of whether you took the money out of the Bank CD
or not
