Publications

Focus on IRS GuidanceCode Section 409A Update

Fall 2005
Employment & Employee Benefits Developments - Fall 2005

We previously alerted you to new Section 409A of the Internal Revenue Code ("Section 409A"). Section 409A codifies new rules governing nonqualified deferred compensation plans, including equity incentive plans, severance plans and similar arrangements. While it is likely that many existing nonqualified deferred compensation plans may have to be modified to comply with Section 409A, the IRS and Treasury Department have urged employers and plan sponsors to wait to amend plan documents until the IRS and Treasury Department have issued further written guidance.