Did you take money out of your nonqualified pension plan for state considerations

Forum|Forum|3 months ago
March 31, 2026
1 reply
63 views

So, this refers to a nonqualified pension plan. If the nontaxable compensation is put in box 11 and was a result of a stock sale incentive after retirement is this compensation or nonqualified pension? I did not contribute this money to a nonqualified pension plan or a 457. It is sitting in an investment firm has held company stock. It is not clear if such a transaction is considered part of a nonqualified pension plan.

DaveF1006

Level 15

Since this was a “stock sale incentive” triggered by your retirement or departure, it counts as Nonqualified Deferred Compensation. Your employer needs to report this payout in Box 11 so it’s taxed according to federal rules for supplemental retirement benefits.

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