Does payments from Nonqualified Deferred Comp plan prohibit you from collecting Texas unemployment benefits?

Yes, payments from a Nonqualified Deferred Compensation (NQDC) plan can affect your eligibility for Texas unemployment benefits. The Texas Workforce Commission considers these payments as income, which may reduce or disqualify your unemployment benefits depending on the amount received. It’s essential to report any NQDC payments when filing for unemployment to ensure compliance with state regulations.