Hi,
My employer has an NQ plan that I contributed to besides the normal 410k. According to HR and company policy, NQ contribution are like 401k and are not taxed until distribution However. The company's W-2 shows the full salary and did have a retirement plan marked in box 13. But it did not list how much I contributed to that. Hence turbo tax is still calculating my tax based on my salary including my NQ contribution. In other words, I am still paying tax for the NQ. How to solve this and let turbo tax know the NQ is not taxable?
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Are you sure the amount in box 1 is your full salary and not the amount after the NQ is subtracted? Is box 1 the same as boxes 3 & 5? If it is like a 401K then it is not included in box 1 to start with. You don't subtract it out anywhere else. A 401k is coded in box 12 as code D but it is still not in box 1.
Does NQ stand for non-qualified Annuity? Looks like it is not pretax but you don't pay tax on the growth until you take it out.
https://www.thebalancemoney.com/what-are-non-qualified-annuities-5223602
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