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Nonqualified Pension Plan - Taking money out vs Contributing

When entering the W-2 for the Executive Deferment (which my husband contributed to) the Turbo Tax question is "Did you take money out of your non-qualified pension plan?"  The two possible answers are: "Yes, I took this money out of my nonqualified or Sec 457 plan"  OR "No, this is money I contributed to my nonqualified or Sec 457 plan."  This is money he is receiving quarterly (he's retired) but he did contribute to the amount while working.  Which answer is correct?  

 

Thank you for your help.

 

 

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4 Replies
BillM223
Expert Alumni

Nonqualified Pension Plan - Taking money out vs Contributing

If he is receiving money quarterly from the plan, then you answer, "Yes, I took money out of this nonqualified or Section 457 plan"..

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Nonqualified Pension Plan - Taking money out vs Contributing

Bill, Thank you so much! That really helped as I could see it both ways.

mp2024
New Member

Nonqualified Pension Plan - Taking money out vs Contributing

When this question is being asked in the context of a W-2 being entered, how can the answer ever be "No, this is money I contributed to my nonqualified or Section 457 plan."?

Am I missing something?

AmyC
Expert Alumni

Nonqualified Pension Plan - Taking money out vs Contributing

The 457 gives a w2 to retirees that includes the benefits they paid in. Depending on circumstances, it could be a complete or partial  distribution of your contributions.

 

References:

IRS 457 drop

IRC 457(b) Deferred Compensation Plans

@mp2024 

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