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A Better Partnership


Oct 2007
October 26, 2007

The IRS Delays Section 409A Deadline to December 31, 2008

We recently alerted clients and friends that the IRS granted a partial extension for compliance with the final deferred compensation regulations under Section 409A of the Internal Revenue Code. We noted that under the partial extension significant work, including possible plan amendments, still had to be completed by Dec. 31, 2007. The IRS just issued additional transition relief that provides a more complete extension from Dec. 31, 2007, to Dec. 31, 2008.

So what do you need to know?

  • The new transition relief allows us to continue using the transition period to make new elections for the time and form of payment of deferred compensation. The transition period will end Dec. 31, 2008.

  • You must operate your deferred compensation plans now in reasonable, good faith compliance with Section 409A and accompanying regulations.

  • Your deferred compensation plans must be in written compliance with the final regulations no later than Dec. 31, 2008.

If you have been in contact with us regarding your deferred compensation plans and Section 409A, we will continue to work toward getting those plans into written compliance with Section 409A by the new deadline of Dec. 31, 2008. If you have questions regarding Section 409A or this latest transition relief, or if you have not yet determined whether 409A will apply to any of your plans or agreements, please contact any member of our Section 409A task force listed below.


George L. Whitfield, Chair


Sue O. Conway


Anthony J. Kolenic, Jr.


Norbert F. Kugele


John H. McKendry, Jr.


Kimberley P.H. Mitchell


Vernon P. Saper


Justin W. Stemple


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