The 409A Transition Rule Lives to Fight Another Day:IRS Extends Final Section 409A Compliance Date in Notice 2007-86

more+
less-

There’s relief and then there’s relief. Having seen the former in Notice 2007-78 – which provided a rather limited extension of the documentation requirements imposed by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) – we are in a much better position to appreciate the latter, coming in the form of Notice 2007-86.[1] With the demise of the “transition rule” available

under Section 409A looming at year-end, the IRS has now taken mercy on countless non-compliant deferred compensation arrangements in need of its assistance and given the transition rule an extra year of life. In a welcome change of pace, Notice 2007-86 offers a fairly straightforward extension of the Section 409A requirements that were not addressed by Notice 2007-78 and offers some useful guidance for compliance during the transition period. However, while Notice 2007-86 provides a

workable path to Section 409A compliance in most instances, it does not solve every Section 409A problem nor does it provide a “free pass” on operational compliance prior to January 1, 2009.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:

more+
less-

Morrison & Foerster LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×