My company ended and distributed the funds from a Non-qualified Deferred Compensation plan before the end of the year, 2011. They withheld taxes. Now, doing my taxes, I am finding that I am being charged penalties for early withdrawal. The distribution was not my choice. The tax code 409a doesn't say anything about what to do if a company ends the program and distributes the funds. I shouldn't have to pay a penalty for this. Is there any form I need to fill out or any way to avoid penalty?