Deferred Compensation Deadline Extended

The IRS recently extended the deadline for deferred compensation arrangements to comply with section 409A of the Tax Code.  Although employers now have until the end of 2008 to have all deferred compensation arrangements documented in a plan or agreement that complies with the statute, the arrangements must comply in operation now.  For example, distributions from such an arrangement can occur only upon the occurrence of an event described in section 409A, even if the written arrangement provides otherwise.

We recently issued a Client Alert describing section 409A and the new extension.