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Level 2
December 8, 2023
Solved

Contributions to Non-Qualified Deferred Compensation Plan W2

Do contributions to non-qualified deferred compensation plan show up in the W2?

    dmertzAnswer
    Level 15
    December 8, 2023

    Expert Reviewed

    Because Social Security and Medicare taxes are due when the this deferred compensation is no longer subject to forfeit, the contributions should appear in box 3 (subject to the Social Security wage limit) and box 5 of the W-2 at that time.  If prior year contributions are vesting, they and their attributable earnings also need to appear in box 11.  See examples 1 through 3 in the Nonqualified Deferred Compensation Reporting Examples Chart in the instructions for Form W-2:  https://www.irs.gov/pub/irs-pdf/iw2w3.pdf

    4 replies

    Level 15
    December 8, 2023
    No text available
    torrenAuthor
    Level 2
    December 8, 2023

    @dmertz  did you mean to reply to the question?

    Level 15
    December 8, 2023

    Yes. Please wait for a response. Thank you.

    dmertzAnswer
    Level 15
    December 8, 2023

    Expert Reviewed

    Because Social Security and Medicare taxes are due when the this deferred compensation is no longer subject to forfeit, the contributions should appear in box 3 (subject to the Social Security wage limit) and box 5 of the W-2 at that time.  If prior year contributions are vesting, they and their attributable earnings also need to appear in box 11.  See examples 1 through 3 in the Nonqualified Deferred Compensation Reporting Examples Chart in the instructions for Form W-2:  https://www.irs.gov/pub/irs-pdf/iw2w3.pdf