Jump to content

Withholding on death benefit from nonqualified plan


Guest gaham

Recommended Posts

Does anyone know whether the employer is required to withhold for federal income taxes where the employee has died and spouse is entitled to a lump sum death benefit from the employer's unfunded nonqualified deferred comp plan? Reg. Sec. 35.3405-1, Q & A 21 appears to require withholding under section 3402 but at least one IRS representative that I've talked to says there is no withholding obligation. The 1099-R instructions are not particularly helpful in my view but the representative cited to these as her authority that no withholding is required. Any input would be appreciated.

Link to comment
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
×
×
  • Create New...