Question

Nonqualified Plan Income Questions in TurboTax

Forum|Forum|2 years ago
February 4, 2024
1 reply
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I have a W-2 for a supplemental pension that has the same amounts in Box 1, Wages, and Box 11, Nonqualified Plans. Why does TT then ask me if this income is from a Nonqualified plan? And, what are the consequences of checking or not checking that box?

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RobertB4444

Your plan is clearly non-qualified. Non-qualified plans do not allow the employer paying them to deduct the costs. Qualified plans benefit the employer a lot more.

@SaratogaJoe

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S

SaratogaJoeAuthor

I understand that part. What I do not understand is why TT asks me to check the unqualified plan box after I have already entered the amounts I received as from an unqualified plan in Box 10 of the W-2 entry form. Are they asking about that income or other income on that W-2?

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SaratogaJoeAuthor

That is not the question I see, but I was using a prior year copy of TT. I had purchased a different product for 2023 and ran into two of those unqualified plan check boxes so I decided to go back and see how TT handled the same issue in the past. Based on your response, I will purchase a copy of TT for 2023 and see how the current version actually deals with the issue.

OK, I purchased and installed TT Deluxe 2023. I see the Nonqualified Plan question you mention. Better than the old way, but still seems unnecessary and confusing. According to the Instructions for Employee on the back of my W-2, amounts in Box 11 would only be for money paid to me. I fail to see how Box 11 could be used for money I paid into a Nonqualfied plan.

Other issues I found with TT are: 1) it failed to import my 2022 Form 1040 in PDF format; 2) when it downloaded my 1099-INT from Ally Bank it downloaded only two of my three accounts, and I do not see any way to edit that information to correct the total; 3) it could not download data from either CapitalOne of Sallie Mae, even though they are both very large institutions. Hard to believe this is the #1 tax prep program.