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Q: Are non qualified deferred compensation taxable for federal unemplyment?
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What does section 409A of the Internal Revenue Code refer to?

Section 409A of the Internal Revenue Code regulates the treatment, for federal income tax purposes, of non-qualified deferred compensation paid by a service recipient to a service provider. Typically these financial transactions involve an employer and employee or contractor.


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You will never be able to withdraw the deferred compensation amounts from the 401K with out having to pay the federal and state income taxes that will be due when you take any distribution amounts from your 401K plan.


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