- Treasury, IRS Issue Final Regulations on Nonqualified Deferred Compensation
- April 30, 2007
- Law Firm: Jackson Walker L.L.P. - Dallas Office
The U.S. Treasury Department and the Internal Revenue Service have issued the long-awaited final regulations on nonqualified deferred compensation plans and arrangements under Section 409A of the Internal Revenue Code.
Among other things, these regulations involve:
- Changes to the exceptions for short-term deferrals and equity rights
- Updates on key definitions, such as service recipient stock, separation from service, and good reason terminations
- Revisions to plan aggregation rules
- Separation pay plans and post-separation reimbursement requirements
- Linked qualified and nonqualified plans
Plan document amendments to comply with the new regulations are required by December 31, 2007.