NJ Inheritance Tax and NQ Deferred Compensation Plan
My brother passed away in NJ. I am Class C beneficiary. He did not have a will. I have been appointed administrator of Estate and am only heir. One of his assets was a Non Qualified Deferred Compensation Plan with a former employer. I was named the beneficiary in this plan. My question is specifically related to the NJ Inheritance Tax. Do I need to include this asset/account as part of the NJ Inheritance Tax Return? I have read what appears to be some conflicting information regarding this. The company will be sending me the lump sum from the NQDC and it will be reported on a 1099 and I will owe my own fed and state taxes.
Thanks
Mike
Permalink Submitted by Bruce Steiner on Sun, 2019-03-24 02:55
Permalink Submitted by Mike Taft on Mon, 2019-04-01 15:12
Bruce, Thanks very much for your response. My laywer confimred that I will be receving a lump sum payout of the NQ Deferred Comp and this will be reported to me on a 1099. My follow-up question is the following. As this 1099 income will all be taxable in 2019 would I be able to make a SEP IRA Contribution? I would want to max out my SEP. I do not contribute to a 401k plan. ThanksMike
Permalink Submitted by Alan - IRA critic on Mon, 2019-04-01 17:46
If you are otherwise eligible for a 2019 SEP contribution, the receipt of the 1099R will not affect that in any way.