Transcription of SUMMARY OF 409A BASIC RULES AND CONCEPTS
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BDDB01 4821965v2 BRIEF SUMMARY OF BASIC 409A RULES AND CONCEPTS I. Introduction. Added to the tax code in October of 2004, Section 409A has created a new body of law governing deferred compensation. A. On the positive side, Section 409A resolves decades of uncertainty created by conflicts between IRS positions and federal court authority. On the negative side, it eliminates many common plan designs, magnifies the risks of being wrong, and creates new issues and restrictions for many types of arrangements not commonly thought of as "deferred compensation." B. Section 409A, in essence, creates a new category of "semi-qualified" deferred compensation plans.
BDDB01 4821965v2 BRIEF SUMMARY OF BASIC 409A RULES AND CONCEPTS I. Introduction.Added to the tax code in October of 2004, Section 409A has created a
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