Some 409A Errors Can Still be Corrected
We wanted to pass along a timely notice issued by the law firm of Seyfarth Shaw, about the IRS 409A correction program. 409A is a section of the Internal Revenue Code, enacted several years ago, that imposes limits on deferred compensation, and picks up items generally not thought of as “deferred compensation” such as severance pay and performance bonuses. It was several years between the time Congress enacted 409A and the time it went into effect, implemented by 300+ pages of IRS regulations. In general, December 31, 2008 was the “drop dead date” for companies to bring their deferred compensation arrangements into compliance with the law and regulations, but there are exceptions. The Seyfarth write up is here.
We are not affiliated with Seyfarth, nor do we provide legal services. Readers should consult their legal counsel or other tax advisers about this topic.
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