The Not-So-Brave New World of Deferred Compensation

Abstract

This article discusses the requirements of section 409A of the Internal Revenue Code, enacted in 2004, that establishes detailed new requirements for non-qualified deferred compensation arrangements. The article notes the breadth of section 409A and the many changes that will be required to most plans in order to keep them in compliance and avoid severe tax penalties. The article describes the statutory and regulatory effective dates, and provides guidance as to what employers need to do to begin to bring their plans into compliance.

Keywords: section 409A, Internal Revenue Code