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November 20, 2007
REVISED 409A
DEADLINE EXTENSION
The
IRS has issued Notice 2007-86 amending and superseding Notice 2007-78.
Notice 2007-78 extended the "documentation deadline" for amending
nonqualified deferred compensation plans to comply with Code Section 409A
regulations. Sponsors will still have until December 31, 2008 to amend
their nonqualified deferred compensation plans. Notice 2007-86 further
extended the effective date of the final regulations, and also extended the
deadline to December 31, 2008 for establishing a written designation of
time and form of payment for nonqualified deferred compensation.
In the interim, affected plans may provide, or be amended to provide, for
new payment elections as to both time and form of payment regarding such
compensation on or before December 31, 2008. Such election or amendment
will not be treated as a change in the time and form of payment or as an
acceleration of a payment under Code Section 409A; provided, (i) the plan
is amended and elections are made on or before December 31, 2008, and (ii)
the election or amendment applies only to amounts that would not otherwise
be payable in the year of election or amendment.
Notice 2007-86 is available on the IRS website, http://www.irs.gov/.
If you would like any additional information on these recent developments,
please contact Edward C. Hammond (248-988-1821), ehammond@clarkhill.com)
or Kristi R. Gauthier (248-988-5854), kgauthier@clarkhill.com).
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