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Frequently Asked Question
Are the tax rules, withholding, and tax return reporting for NQDC different if I am an independent contractor, consultant, or outside director and not an employee?

In some ways they are similar. The income tax treatment of nonqualified deferred compensation is the same for everyone. However, for nonemployees the reporting and withholding are different…

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More FAQs
What is the tax treatment of company-owned life insurance when my company pays part of the death benefit to my beneficiary?
What is the tax treatment when the NQDC plan is set up to pay the benefits to my beneficiary upon my death?
If my beneficiary gets NQDC distributions because I died before receiving them, does the beneficiary owe income tax or FICA taxes on them?
Is my NQDC part of my estate if I die before receiving all of the distribution(s)? What is the tax treatment?
Does the money in my NQDC plan count in the calculation when I convert a traditional IRA to a Roth IRA?
Can income from my NQDC distribution alone qualify me to establish an IRA?
Will NQDC distributions cause my Social Security benefits to be taxed?
Does NQDC affect the annual earnings limit of Social Security?
Can I roll over my distributions from the NQDC plan into an IRA and keep the tax-deferred status?
If the distribution is not made at the exact time specified in the plan, how much earlier or later than the scheduled distribution date can I receive the payment without being penalized?

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