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Level 1

Is a 401k a pension

I have a W2 with an amount in Box 1 and Box11.  This amount was distributed from the nonqualified portion of my 401K.  In the question that asks about uncommon situaitons - Should i check "pension plan" even though this was a 401k?  if so, is the following question, Does this represent $ from a nonqualified plan?"  Yes?


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Level 1

Is a 401k a pension

No. A 401(k) plan is a type of qualified retirement plan but it is not considered a pension plan.  So do not check that your 401(k) plan is a pension plan.

The biggest difference between a 401(k) plan and a traditional pension plan is the distinction between a defined benefit plan (pension plan) and a defined contribution plan (a 401(k) plan).

1 Reply
Level 1

Is a 401k a pension

No. A 401(k) plan is a type of qualified retirement plan but it is not considered a pension plan.  So do not check that your 401(k) plan is a pension plan.

The biggest difference between a 401(k) plan and a traditional pension plan is the distinction between a defined benefit plan (pension plan) and a defined contribution plan (a 401(k) plan).