Discussion:SERP's
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Discussion Forum Index --> Tax Questions --> SERP's
| 25 October 2007 | |
| Does anyone know if there is tax on a SERP when distributed on either a portion or the whole amount? My understanding is that a SERP is reported as taxable each year as the benefit is accrued. | |
| 25 October 2007 | |
| SERP = Supplemental Executive Retirement Plan
A form of deferred compensation. If set up correctly, the tax will be payable when the funds are received. | |
Death&Taxes (talk|edits) said: | 25 October 2007 |
| Many, many years ago that acronym was used for Keogh plans [Self-employed Retirement Plan]. I had one client who until his death in 2005 received a 1099-R from the XXXX Financial Services, "Trustee for Frank Smith SERP," a Keogh Plan funded by his lifetime companion when that man had a medical practice. My client was the sole beneficiary.
I thought my memory was faulty, but I checked the file and that was the wording on the 1099R. The plan was probably begun before SEPs, IRAs etc ever came along. | |
| 25 October 2007 | |
| Supplemental Executive Retirement Plan also referred to as a "top hat plan"
It was my understanding that the accrued benfit was reported in the w-2 each year. The company is closing and there is a large amount in the fund that has not been rported. I don't know why this is KPMG does the s-corp I handle the shareholders . My assumption is it would be subject to income tax and social security and medicare. | |
| 25 October 2007 | |
| The benefit plan may be handled by a separate administrator. | |
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