Non-Qualified Plans (W-2) are employer-sponsored benefit plans, like deferred compensation, not meeting IRS qualification rules, with earnings reported on W-2 as taxable income.
- What are non-qualified plans (W-2)?
Answer: They are benefit plans like deferred compensation reported on W-2. - What are examples?
Answer: Examples include executive bonuses and stock options. - How are they taxed?
Answer: Earnings are taxed as income when vested or distributed. - Who benefits from them?
Answer: They benefit high earners or executives. - What role does HR play?
Answer: HR administers plans and ensures tax reporting.
