New 409A rules force employers back to the drawing board on deferred compensation

Palmeri, Frank
June 2007
Employee Benefit News;Jun2007, Vol. 21 Issue 8, p47
The article examines Section 409A regulations for all forms of non-qualified deferred compensation, issued by the U.S. Internal Revenue Service. Details of the application of the deferral election rules to severance arrangements and employment agreements are outlined. It enumerates the issues that should be considered regarding severance arrangements. Stock options will not be treated as deferred compensation because of the failure to include equity-based compensation in the rules.


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