A 409a deferred compensation plan is a non-qualified arrangement that allows employees to defer a portion of their income to a future date. This plan is often used by high-income earners to reduce ...

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Background: Why was Section 409A of the Internal Revenue Code enacted? Prior to the enactment of Section 409A, no single section of the Internal Revenue Code governed taxation of nonqualified deferred ...

Employers that want to reward a key employee by promising to pay a bonus upon retirement need to examine 409A. Section 409A of the Internal Revenue Code sets strict rules for when employers may pay ...

In April 2007, the IRS issued final regulations under section 409A pertaining to nonqualified deferred compensation (NQDC) plans. The regulations represent a culmination of efforts to bring uniformity ...

Wendi Lazar, of counsel at Outten & Golden LLP, wrtites that employees' attorneys must be vigilant to guard against serious adverse tax consequences for their clients and at the same time protect ...

If you have equity as part of your retirement or executive compensation plans, you likely need a 409A valuation. The need for a valuation also applies if you are preparing to issue equity (equity ...

A non-qualified deferred compensation (NQDC) plan allows a service provider to earn wages, bonuses, or other compensation in one year but receive the earnings—and defer the income tax on them—in a ...

You finally closed your first round, or you’re about to issue equity to an early hire who took a below-market salary to bet on you. Someone asks, “Do we have a 409A?” You nod, then panic-Google it ...

The IRS has issued transition relief and guidance for correcting operational failures under nonqualified deferred compensation plans. Following the methods outlined in the guidance will avoid income ...