For a distribution to be reported on Form W2 from a non-qualified deferred compensation plan, what withholding rate for federal taxes should be taken?

BA,

Problem is you never know what additional income these individuals have so can't always assume the wage tables will work. As a rule, we withhold at the 25% supplemental rate to be safe unless the client requests otherwise. Lots of scenarios to go otherwise with.

TAG

http://www.irs.ustreas.gov/pub/irs-pdf/p15.pdf
"Supplemental Wages"