Guest ghal Posted September 13, 2012 Posted September 13, 2012 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
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