Withholding on Distributions from Nonqualified Plans

[Guest amboyd]

How do you withhold income taxes on payments made

to the beneficiary of a non-qualified plan participant, when the payments are made monthly

over a period of several years?

[Guest EAKarno]

As I recall, the payments are W2 income in the year of the participant's death subject to FICA and income tax withholding. Thereafter, it is 1099 income and withholding not required.