• IRS Issues Guidance on New Nonqualified Deferred Compensation Rules
  • April 15, 2005 | Author: J. Paul Jacobson
  • Law Firm: Quarles & Brady LLP - Milwaukee Office
  • This update discusses the IRS' guidance on new nonqualified deferred compensation plans issued on December 20, 2004. Release Notice 2005-1, contains guidance on new Internal Revenue Code Section 409A which accelerates income taxation and imposes penalty taxes on individuals covered by deferred compensation plans that do not comply with its requirements. Employers will have until the end of 2005 to amend plans for compliance.