Distributions from nonqualified deferred comp plan

The definition of Compensation under the 401(k) Plan is W-2  compensation. Employer has a non-qualified deferred compensation plan. Participant receives a distribution from the non-qualified plan. Can the participant elect to defer a portion of the non-qualified plan distribution to the 401(k) Plan? Seems to me that the answer is "yes" because distributions from a non-qualified deferred compensation plan are included in W-2 compensation.

Thoughts???

Agreed, unless the 401(k) plan explicitly carves the NQ distribution out as a deferral source. 

Odd fact situation, but I agree with XTitan that you should follow the plan document. 

Off the top of my head, I am not aware of any reason why an individual could not defer using a nonqualified plan and then upon distribution make an elective deferral into the 401(k) plan.  In fact, other than the unusual circumstance, it seems perfectly logical.  The individual however may shortchange himself if the 401(k) plan provides for a matching contribution on a payroll-by-payroll basis.  Either way, the distributions are both ordinary income and subject to income tax withholding, so the additional deferral may well pay off.  

Yes, and I think they would have to follow the employee's regular deferral election unless 401(k) participants are allowed to make separate bonus/irregular comp deferral elections.