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?
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If he is receiving money quarterly from the plan, then you answer, "Yes, I took money out of this nonqualified or Section 457 plan"..
Bill, Thank you so much! That really helped as I could see it both ways.
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?
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:
IRC 457(b) Deferred Compensation Plans
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