What are distributions from nonqualified plans and 457(b) plans?
If the amount in Form W-2, Box 11 is a distribution you took out of your nonqualified plan or 457(b) plan, answer Yes to the nonqualified plan distribution question. If it was an amount contributed to the plan in a prior year that has now vested, answer No. If you aren't sure, you should contact your employer.
Nonqualified deferred compensation plans are a type of retirement plan that may be offered by your employer to postpone paying taxes on a portion of your income. They're called "nonqualified" because they aren't covered under the Employee Retirement Income Security Act. These plans may be offered in addition to, or instead of, a qualified retirement plan, such as a 401(k). The rules for these plans vary, so you may need to ask your employer for more information about your specific nonqualified plan.
A 457(b) plan is a deferred compensation retirement savings plan offered to employees by state and local governments and by some nonprofit organizations.
Distributions from nonqualified plans and 457(b) plans through nongovernmental employers are shown in Box 11 of your Form W-2.
Some nonqualified plans and 457(b) plans include a vesting schedule, where some or all of the funds might be subject to forfeiture if you leave your employer before a certain time period has passed. If your plan has this condition, once the funds contributed in prior years have vested, they will be included in Box 11 of the W-2. These are contributions to your plan, not distributions.
Nonqualified deferred compensation plans are a type of retirement plan that may be offered by your employer to postpone paying taxes on a portion of your income. They're called "nonqualified" because they aren't covered under the Employee Retirement Income Security Act. These plans may be offered in addition to, or instead of, a qualified retirement plan, such as a 401(k). The rules for these plans vary, so you may need to ask your employer for more information about your specific nonqualified plan.
A 457(b) plan is a deferred compensation retirement savings plan offered to employees by state and local governments and by some nonprofit organizations.
Distributions from nonqualified plans and 457(b) plans through nongovernmental employers are shown in Box 11 of your Form W-2.
Some nonqualified plans and 457(b) plans include a vesting schedule, where some or all of the funds might be subject to forfeiture if you leave your employer before a certain time period has passed. If your plan has this condition, once the funds contributed in prior years have vested, they will be included in Box 11 of the W-2. These are contributions to your plan, not distributions.
