Are 457(b) non qualified deferred compensation distributions considered box 1 income on my W-2 or should box 12 G be used to report it(there is no Box G on my W-2?)?

[warren-perkins]

Should 457(b) non- qualified distributions be considered in calculating Medicare benefit premiums?

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://www.ssa.gov/pubs/EN-05-10536.pdf">https://www.ssa.gov/pubs/EN-05-10536.pdf</a>

[Carl]

"G" is not referencing a box anywhere on the W-2. The Code "G" is the code you enter in box 12 to identify the amount you will enter in the section to the right of the code you enter. Weather you enter it on 12a or 12d doesn't matter.  So for example, you enter the code "G" in the first part of box 12a, and the amount in the 2nd part of 12a.

[dmertz · Accepted solution]

Distributions from a nonqualified 457(b) plan are required to reported by the payer in box 1 and in box 11 of Form W-2.  These are included in your AGI for calculating Medicare premiums.  The amount shown in box 11 is the amount of box 1 that is not subject to Social Security and Medicare taxes because these taxes were already been paid on this portion when deferred into the 457(b).

Code G in box 12 of a W-2 has nothing to do with reporting distributions from a 457(b).  It is for reporting amounts of income that are deferred (contributed) into a 457(b) plan.

[LGP-PA]

I don't know how to answer the question i got about my deferred comp.   I never thought of it as pension!!  i had no choice about pay going into deferred comp - it started when i hit a certain income level....   part of pay paycheck just went there.   and now over the enxt few years its being paid out -- so is it 'money i contributed?'   it seems that way to me since it came off of my top line income.

The question from Turbo is "Did you take money out of your nonqualified pension plan?"  and the answer choices are:

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."

[dmertz]

TurboTax is asking if the W-2 is reporting you having received money from the plan or if it is instead reporting you putting money into the plan.  Money being paid out to you is money you are taking out of the plan, not money you are presently contributing to the plan.