Section 409a Compliance And Deferred Compensation - A Guide For Tax, Benefit And Corporate Attorneys
June 18, 2008
On June 18, 2008, Stephen L. Ferszt moderated the SECTION 409A COMPLIANCE AND DEFERRED COMPENSATION - A Guide for Tax, Benefit and Corporate Attorneys held at the New Jersey Law Center in New Brunswick, New Jersey. The IRS has extended the compliance period for Section 409A until the end of this year. As Tax, Benefit and Corporate Attorneys know, IRS Code Section 409A imposes restrictions on the timing of payments from certain deferred compensation agreements, such as stock options, deferred compensation plans, bonus arrangements and employment and severance agreements. With the deadline looming, attorneys must carefully review their client’s formal and informal compensation agreements, and if need be, bring them into compliance with the regulations. Failure to do so can result in a great deal of financial pain for employees, as they will be required to include the noncompliant deferred amounts in income on their tax returns and pay additional tax - specifically a whopping 20 percent excise tax and interest.
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Stephen L. Ferszt