• 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.