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Level 2
posted Mar 31, 2023 4:20:27 PM

409a Plan Vesting Amount in Box 11 - how to answer question of contribution vs. distribution?

My W2 includes the amount VESTED for my 409a plan at my company in box 11. These amounts were taxed for FICA in boxes 3 and 5 but not included for income tax in box 1 as they were not distributed. However, they were not really contributed either as the contributions happened in previous years. The amount in box 11 is the portion of those contributions that vested and had FICA paid. Would I still answer contribution in this scenario?

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1 Replies
Expert Alumni
Apr 5, 2023 7:10:06 AM

Yes, you will answer "Contribution" to the follow on question asking about the amount in box 11 since it was not a distribution.  

 

If the amount would have been a distribution then it would have been taxable income in box 1 and when you identify it as such on your return, the amount would move from line 1a on your form 1040 to line 8t of schedule 1.