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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 11819
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I put about $100K into an executive post-tax supplemental savings

Customer Question

I put about $100K into an executive post-tax supplemental savings plan over the past five years and retired during tax year 2014. Related to this I received a 2014 W-2 that shows $134K in box 1, no social security or medicare wages, and $134K in box 11 (nonqualified plans). Should not I only have to report the amount of gain/company match or $34K? Is there a special way to report this on my tax return so that I only pay tax on the $34K and not also the $100K that I already paid tax on before contributing to this plan?
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
I am a CFP, CRPS (Chartered Retirement PLans Specialist) and have a law degree.
SO sorry, the TYPICAL SERP plan doesn't work like that.
A supplemental executive retirement plan is a deferred compensation agreement between the company and the key executive whereby THE COMPANY agrees to provide supplemental retirement income to the executive and his family if certain pre-agreed eligibility and vesting conditions are met by the executive.
Any deferred benefits are not currently taxable to the key executive. But then when paid, the benefits become taxable to the executive as income and tax deductible to the company.
Are you saying that YOU were paid X, taxed on X, and then used THOSE dollars to fund this plan?
If so, this isn't the classic SERP (Supplemental Executive Retirement Plan).
Let me know and we can go from there...
Expert:  Lane replied 2 years ago.
... just checking back on to see if you saw my question for you.
If you can give me a little more detail I can get to a more specific answer.
If this HAS given you enough, I'd appreciate a positive rating using the stars or faces on your screen, but if you have any additional questions or want tto go further here, please let me know