409A is a tax code regulating nonqualified deferred compensation. It was enacted in October 2004, and the time for compliance is upon us. Generally, nonqualified deferred compensation plans must comply with the 409A rules beginning January 1, 2008, or risk substantial penalties, both to participant and employer.
In IRS Notice 2007-78, limited relief has been granted for the written documentation part of this requirement. A request has been made for further relief, though, it is unclear whether this will be granted. Assuming that further relief will not be granted, following is a list of "To-Dos" by the end of 2007, and in 2008.
To-Dos by 12/31/07
To-Dos beginning 1/1/08
To-Dos by 12/31/08
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations.
As required by U.S. Treasury rules, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this Benefit Beat is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding any penalties that may be imposed by the Internal Revenue Service.
Access articles and tools to help your business generate cash, improve leverage, and align & transform as you recover from the pandemic.
Access all COVID-19 related articles to help your business respond to the pandemic.