Amending (or Terminating) Deferred Compensation Plans Without Penalties

This article reminds readers of §409A's draconian penalties and specific guidance of amending modifying, amending or terminating existing nonqualified deferred compensation plans.

18 minute read December 01, 2022 at 12:07 AM

Lawrence L. Bell

Amending (or Terminating) Deferred Compensation Plans Without Penalties

Section 409A of the IRS code covers virtually any contractual deferral of compensation other than under a qualified retirement plan or a vacation, sick leave, compensatory time, disability pay, or death benefit plan.

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