Reporting "non qualified" 457b distribution
I have a "non qualified" 457b plan and have received a W-2 (not a 1099-R) with wages (from plan distribution) in box 1. IRS says to report this on Schedule 1 but I can't figure out where in the FreeTax system to input this income.
Answers
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Hi Bruce_98,
The IRS Instructions for Schedule 1, Line 8(t) says, "Line 8t: Pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan. Enter the amount that you received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental 457 plan. This may be shown in box 11 of Form W-2. If you received such an amount but box 11 is blank, contact your employer or the payer for the amount received."
In our software you report that as a W-2, but you also need an amount in box 11. The IRS says to contact your employer if box 11 is blank. When you enter box 11 on the W-2 form, we ask you and additional question on the following page and report the amount on Schedule 1, line 8(t).
