Deferred compensation – Are you in compliance with Sec. 409A?
Abstract: Now is a good time for businesses to review their deferred compensation plan documents and practices. The IRS announced last year a limited audit initiative to evaluate compliance with Section 409A, which prohibits deferred compensation arrangements that give participants (including employees, directors and independent contractors) undue control over the timing of benefits. The law and regulations in this area are complex, but this article offers a quick summary of the main requirements.