Guest angiocath Posted March 15, 2010 Share Posted March 15, 2010 My employer terminated our Split Dollar NQDC plan two years ago and last year we recieved payment for our share of the investment. I am still an employee of the company. How should the payment be reported to the IRS. My employer used a 1099-Box 7 which makes me responsible for self-employment tax on the amount. Is this correct? I have gotten several different conflicting opinions that the money should have been reported either as W2 wages or 1099 box 3 income. Link to comment Share on other sites More sharing options...
XTitan Posted March 16, 2010 Share Posted March 16, 2010 Payment from a terminating split-dollar plan doesn't seem to be any different than a payment from a nonqualified deferred compensation plan, which generally leads to W-2 reporting. While Notice 2007-34 is the authority on the interaction of 409A with split-dollar, it does not cover W-2/1099 reporting. - There are two types of people in the world: those who can extrapolate from incomplete data sets... Link to comment Share on other sites More sharing options...
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