Section 409A of the Internal Revenue Code was enacted in 2004 and has been in effect since 2005, but the
comprehensive and complex final regulations interpreting the provision formally took effect only January 1, 2009.
As a result, “good-faith compliance” with the statutory provisions and transitional guidance is now no longer
enough. Plan documentation and operations now need to conform to the final regulations, with limited exemptions
for grandfathered deferrals earned and vested before 2005. Failure to abide by the final regulations comes with a
hefty price. Specifically, affected participants will be subject to accelerated taxation, a 20% tax penalty and
possibly additional interest.
Accelerated Taxation of Deferred Compensation Under Section 457A...
Tax Consequences of Noncompliance with Requirements of Section 4...
An Issue-Spotter's Guide to Tax Code Section 409A
Complying with Section 409A's Anti-Acceleration Requirement
An Overview of Section 409A's Payment Rules
Section 409A Subsequent Changes in Elections
Stock Options and Other Equity Awards Under Section 409A of the ...
The Section 409A Survival Guide: A Comprehensive Deferred Compen...
Understanding the Section 409A Initial Election Requirements
Election and Distribution Rules Under the Final Section 409A Reg...
Severance Pay Under the Final Section 409A Regulations
Equity Compensation Under the Final 409A Regulations
Impact of Section 409A on Nonqualified Deferred Compensation Pla...
Section 409A Specified Employee Rules
Section 409A Rewrites the Rules on Severance Pay and Benefits
Section 409A's Impact on Stock Plans
Types of Compensation Subject to Section 409A