in kind distributions from non qualified plans

[Guest cdascola]

Can you issue an in kind distribution from a non qualified plan? if so, what is the taxation?

[mbozek]

Yes. Distributions of property will be taxed as taxable wages under IRC 83 to the extent that the FMV of the property exceeds the employee's basis. If employer distributes LI policy with a cash value of 100k, the employee will have 100k of taxable income less any employee contribuion s to the policy.