Jump to content
Sign in to follow this  
Guest billyj

409 A reporting

Recommended Posts

Guest billyj

A question regarding the reporting requirements for distributions from a deferred compensation plan. Notice 2007-89 (applicable to 2007 tax year) states that "employers must treat amounts includible in gross income under Section 409A as wages for income tax withholding purposes. An employer is required to report such amounts as wages paid on Line 2 of Form 941, and in Box 1 of Form W-2. An employer must also report such amounts in Box 12 of Form W-2 using Code Z." The discussion regarding how to calculate amounts includible in gross income in the Notice, however, is limited to how to calculate amounts under plans that fail to meet 409A's requirements. It does not address standard distributions from plans that comply with 409A.

Are standard distributions under a deferred compensation plan that meets the requirements of 409A, reportable only in Box 1 or do we also report in Box 12 using Code Z?

What about Line 2 of Form 941?

Share this post


Link to post
Share on other sites
Guest mbw
They're only box 1 wages.

But what about Box 11? Isn't there still a reporting requirement for compliant distributions for Box 11 that existed (and continues to exist) before 409A?

Share this post


Link to post
Share on other sites
They're only box 1 wages.

But what about Box 11? Isn't there still a reporting requirement for compliant distributions for Box 11 that existed (and continues to exist) before 409A?

the way I read it is you would still report the distribution in box 11 if there were no current or prior year deferrals reported in either boxes 3 or 5.

I was thinking only box 1 as between box 1 and box 12 code z.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...