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UPDATED! When and how are Social Security and Medicare taxes (FICA) paid when I defer my income?

While ordinary income tax is deferred until distribution, you do owe Social Security at a rate of…

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More FAQs
Will my company give me a summary plan description for its nonqualified plan?
UPDATED! What percentage of eligible executives and key employees usually elect to participate in NQDC plans? What reasons do they give for not participating?
Should I participate in my 401(k) or 403(b) plan before my employer’s NQDC plan?
Can I borrow money from my NQDC account?
If I am an outside director or consultant, is the income at deferral and distribution reported on a 1099-MISC?
What appears on my W-2 in the year I defer my income?
Can my company use part of the amount I deferred to pay the FICA (Social Security and Medicare) taxes?
UPDATED! When and how are Social Security and Medicare taxes (FICA) paid when I defer my income?
Can I elect to trigger my distribution upon certain events, such as death, disability, or job loss, rather than just at a specific date in the future?
Will there be some type of enrollment form?
Do I need to elect the percentage I defer, the year when it will be distributed, and the form of payment when it is distributed?
How soon after becoming eligible do I need to enroll in the NQDC plan?
At a minimum, what do I usually need to decide when I enroll?
Do I pay the administrative fees on my plan to enroll? Do I pay back my company for the taxes?
Can directors, consultants, and independent contractors participate in NQDC plans?
Are only senior executives eligible to participate in NQDC plans?
How much of my compensation can I defer?
What types of compensation can I defer?

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