U.S. · Payroll & tax forms
W-2 box 11, nonqualified plans.
What a number in box 11 means, and the many cases where it is correctly empty.
Box 11 shows distributions your employer paid you from a nonqualified deferred compensation (NQDC) plan or a nongovernmental section 457(b) plan. The same amount is also in box 1, so it is not extra income. Its only job is to let the Social Security Administration tell whether part of your pay was earned in an earlier year. Box 11 is blank for most workers, and for several kinds of payment that sound like it.
Does this payment go in box 11?
Result
What box 11 is for
The instructions say the purpose of box 11 is for the SSA to determine whether any part of the amount in box 1, or in boxes 3 and 5, was earned in a prior year. The SSA uses that to verify that it has correctly applied the Social Security earnings test and paid the right benefit. It is a reporting signal for the SSA, so it does not change the tax figures on your return. The same distribution already sits in box 1 and is taxed as wages.
Situations at a glance
| Situation | Box 11? | What the instructions say |
|---|---|---|
| Distribution from an NQDC plan or nongovernmental 457(b) plan | Yes | Report the distribution in box 11 and also in box 1. Make only one entry in box 11. |
| Distribution from a governmental 457(b) plan | No | Report it on Form 1099-R. It is not in box 1 of Form W-2. |
| Distribution to the beneficiary of a deceased employee | No | Report it on Form 1099-MISC, not on Form W-2. |
| Distributions and deferrals reportable in boxes 3 or 5 in the same year | No | Leave box 11 blank. The employer reports the total the employee earned on Form SSA-131 instead (see Pub. 957). |
| Deferrals that just stopped being at risk of forfeiture | No | Those go in boxes 3 (up to the Social Security wage base) and 5, not box 11. |
| Accumulated sick pay or vacation pay paid as special wages | No | Do not report special wage payments in box 11. See Pub. 957. |
| Military retirement payments | No | Military employers report these on Form 1099-R. |
| Stock options, dismissal pay, termination pay or early retirement pay | Generally no | These are generally not NQDC plans, so they are not box 11 items. |
The IRS reporting examples
The instructions include a chart of NQDC examples. In each one regular wages are the starting point; amounts are the IRS’s own illustrative figures.
| IRS example | Box 1 | Boxes 3 and 5 | Box 11 |
|---|---|---|---|
| Wages $200, $20 deferred and vested, $10 vested match | $180 | $210 | $0 |
| Wages $200, $20 deferred and not vested, $10 match not vested | $180 | $180 | $0 |
| Wages $200, $20 deferred and vested, plus $100 + $15 earnings of prior-year deferrals now vesting | $180 | $315 | $115 |
| Wages $100, no deferrals, $50 distribution | $150 | $100 | $50 |
| Wages $200, $20 deferred and vested, $10 vested match, $50 distribution | $230 | $210 | $0 (Form SSA-131 = $210) |
| Wages $200, $20 deferred and not vested, $50 distribution | $230 | $180 | $50 |
Reading those examples
Wages of $100 and a $50 distribution with no deferrals gives box 1 of $150 and box 11 of $50; that is the plain case. Add a deferral that is reportable in boxes 3 or 5 in the same year as a distribution, and the special rule switches off box 11 and moves the reporting to Form SSA-131. The instructions say the employer submits Form SSA-131 to the nearest SSA office or gives it to the employee, and that it is not filed in this situation if the employee was not 61 or older during the tax year.
Worked example
Rosa retired in 2026 and took a $40,000 payout from her former employer’s nonqualified plan. She had no new deferrals that year. Her W-2 shows the $40,000 in box 1, and the employer also enters 40000.00 in box 11. She pays tax on it as wages, and the box 11 figure tells the SSA the money was earned earlier. If she had instead received a distribution from a governmental 457(b) plan, she would have a Form 1099-R and no box 11 entry at all.
What to do if box 11 looks wrong
Compare it with your plan statements. A box 11 amount that is higher than the payout you received, or an amount that should have been on a 1099-R, is an employer reporting question. Ask the payer for a corrected form (Form W-2c) before you file.
More W-2 box guides
Other pages in this set: W-2 Box 10 Dependent Care Benefits, W-2 Box 7 Social Security Tips, W-2 Box 13 Checkboxes, W-2 Box 8 Allocated Tips. For box 12 codes, use the W-2 box 12 lookup.
Sources
- General Instructions for Forms W-2 and W-3 (2026). Read November 2, 2026.
IRS pages last reviewed April 30, 2026. Wage-base and exclusion figures are stated for the tax year named where they appear.
Frequently asked questions
What is box 11 on a W-2?
It shows distributions paid to you from a nonqualified deferred compensation plan or a nongovernmental section 457(b) plan. The amount is also included in box 1.
Do I pay tax twice on the box 11 amount?
No. Box 11 repeats an amount that is already in box 1. It exists so the Social Security Administration can tell whether part of your pay was earned in a prior year.
Why is my box 11 blank when I took a nonqualified plan payout?
If the employer also reported deferrals in boxes 3 or 5 in the same year, the instructions say not to complete box 11 and to report the total earned on Form SSA-131 instead.
Where do governmental 457(b) distributions go?
On Form 1099-R. The instructions say they must not be reported in box 1 of Form W-2.
Does a vacation payout or sick pay payout go in box 11?
No. The instructions say not to report special wage payments, such as accumulated sick pay or vacation pay, in box 11.
Not tax advice
This page summarizes IRS instructions, mostly written for the employers who prepare the form, and is not tax, legal or financial advice. Your payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.