Nonqualified plans go in which box on the Form W-2?

Nonqualified plans go in which box on the Form W-2?

• A. Box 8
• B. Box 9
• C. Box 10
• D. Box 11

Answer: (D)

Nonqualified plans are reported in Box 11 on Form W-2, which is specifically designated for "Nonqualified plans." Nonqualified deferred compensation plans are those that do not meet the requirements of the Employee Retirement Income Security Act (ERISA) and thus are subject to different reporting and taxation rules. Box 11 on Form W-2 serves the purpose of indicating to the IRS and the employee that there are amounts deferred under a nonqualified plan. This is important for tax reporting as it helps in determining the taxable income of the employee in the current year compared to previous years. Proper reporting ensures compliance with IRS requirements and allows the employee to correctly understand their compensation and associated tax implications.

Nonqualified plans are reported in Box 11 on Form W-2, which is specifically designated for "Nonqualified plans." Nonqualified deferred compensation plans are those that do not meet the requirements of the Employee Retirement Income Security Act (ERISA) and thus are subject to different reporting and taxation rules.

Box 11 on Form W-2 serves the purpose of indicating to the IRS and the employee that there are amounts deferred under a nonqualified plan. This is important for tax reporting as it helps in determining the taxable income of the employee in the current year compared to previous years. Proper reporting ensures compliance with IRS requirements and allows the employee to correctly understand their compensation and associated tax implications.