I have a client who is receiving non-qualified deferred comp payments (he is 71 years old). This is from a previous employer. He currently works for a company that purchased that previous employer so when he receives the deferred comp checks and the W-2 it is from his current employer. His question to me is can this income be used to make a contribution to his 401k? I said no, but he would like to know statute and code from the IRS.