Alerts

Certain Transition Relief Extended for Deferred Compensation Arrangements under Section 409A of the Internal Revenue Code

October 13, 2006

The IRS and the Treasury Department recently released Notice 2006-79, which extends through December 31, 2007 certain transition relief relating to rules governing nonqualified deferred compensation plans under Section 409A of the U.S. Internal Revenue Code of 1986, as amended. While the IRS and Treasury Department still plan to issue final regulations later this year, investment managers with deferred compensation arrangements that are subject to Section 409A should note in particular the following transition relief provided under Notice 2006-79: