With the clock ticking on the deadline for complying with Section 409’s deferred-compensation provision and no final rules yet detailing how deferred-compensation should be handled exactly, companies no doubt will be happy to learn that Washington is giving a little reprieve.
The Treasury Department and the Internal Revenue Service have extended by one year existing transition relief for nonqualified deferred-compensation arrangements that will be subject to the requirements of the regulations under Section 409A of the IRS Code, which was added by the passage of the American Jobs Creation Act in October 2004.
