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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124931  
Subject: Re: non-qualified plan Date: 1/22/2000 3:45 PM
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<<I have a non-qulaified plan with my employer. When I leave or retire the funds become mine. My question is
do I have to pay FICA taxes (SSI), as the compensation is for years past?>>

I don't know exactly what type of plan that you have, so it's difficult to really respond.

But generally, while the deferred comp is not subject to INCOME taxes, they ARE subject to FICA and other employment taxes when they are paid to you. Which means that when you take future distributions from the plan, they would not be subjected to employemnt taxes again.

That being said, there ARE non-qualified plans that deferr both income and employment taxes. Which mean that when they are paid out in the future, they'll generally be subjected to both income and employment taxes.

So you really should investigate what is currently going on with you and review the plan that has been provided by your employer. Your employer should be able to give you a summary of this plan that should answer all of your questions.

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