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Level 3
posted Mar 1, 2023 6:07:51 PM

Non-qualified plan contributions?

What tax form reports non-qualified plan contributions and in which box? 

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6 Replies
Expert Alumni
Mar 1, 2023 6:37:48 PM

What kind of plan are you referring to? There are a number of non-qualified plans. 

 

Are you referring to a Deferred-compensation plan? If so, what IRS section refers to it?

Level 3
Mar 1, 2023 8:13:28 PM

Any of those plans.  The answer is W-2 form.

 

I don't understand, after all W-2 data are input, why TT is asking if it is a contribution or withdrawal, when boxes 1 and 11 are filled in. If it was a contribution, box 1 would be blank.  

Expert Alumni
Mar 2, 2023 10:20:30 AM

Employers use box 11 to report money you put into a non-qualified plan in a prior year, but they also may use it to report money that you withdrew from a non-qualified plan.  Thus, TurboTax needs to ask whether the amount was a contribution or a withdrawal.  

 

@ZpTax 

Level 3
Mar 2, 2023 12:50:14 PM

But if box 1 contains data, it is definitely not a contribution. The program should be able to detect it and make the related determination. 

Expert Alumni
Mar 2, 2023 2:54:20 PM

Please read W2 instructions issued by the IRS regarding Box 11. It mentions Under nonqualified plans or nongovernmental 457(b) plans, deferred amounts (contributions) that are no longer subject to a substantial risk of forfeiture are taxable even if not distributed. Report these amounts in boxes 3 (up to the social security wage base) and 5. Do not report in box 11 deferrals included in boxes 3 and/or 5 and deferrals for current year services (such as those with no risk of forfeiture).

 

In answer to your question, the contribution should be reflected in Boxes 3 and Box 5 and not in Box 11. Reach out to us if you need further assistance.

 

@ZpTax 

Level 3
Mar 2, 2023 6:16:57 PM

Sorry, you misunderstood me. I don't need to report any contributions and I didn't imply such a case as an example.