Thanks to welcome relief on the deadline for complying with Section 409A tax-code provisions on deferred compensation, companies and their advisers don’t need to panic about adjusting their compensation plans by the end of the year. Still, experts caution that the extension of most of the transition rules doesn’t mean companies can sit back and relax until the Jan. 1, 2008, final effective date rolls around.
As previously reported in Compliance Week, the Treasury Department and the Internal Revenue Service have extended by one year most existing transition relief for nonqualified deferred-compensation arrangements that will be subject to Section 409A of the Internal Revenue Code, which was added by the passage of the American Jobs Creation Act in October 2004.
