Jump to content

401k withholding on a 409A distribution


Recommended Posts

Posted

I have a 401k plan which defines compensation as W2 income. The executives have the option to defer income into a 409a plan. When the 409a deferral is paid out, it is paid as W2 income. Would you withhold 401k deferrals on the distribution from the 409a plan for a current employee (assuming he is eligible to participate in the 401k and employees are eligible to take a distribution from the 409a plan)? What if the participant terminated in a prior year and is now receiving W2 income from the distribution of the 409a plan for services performed while employed when a deferral election was in place?

Thanks

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...

Important Information

Terms of Use