How does Section 409A affect the use of bonus plans?

Aug 9, 2007 ... This Insight discusses how Section 409A affects employment agreements, severance arrangements and settlement agreements. Aug 9, 2024 ... What is IRC Section 409A? Section 409A of the Internal Revenue Code (IRC) contains the framework for private companies to follow when valuing ... Aug 31, 2011 ... It is a standard practice to condition payment of severance benefits or other compensation on the employee signing a general release of claims against the ... Oct 27, 2004 ... On October 22, 2004, President Bush signed into law the American Jobs Creation Act of 2004. This legislation adds new Section 409A to the ... Dec 7, 2015 ... Upon vesting, compensation deferred under a noncompliant plan or arrangement will become subject to regular federal income tax, a 20% excise tax ... It created a new Section 409A of the Internal Revenue Code (“409A” and the “Code” respectively). 409A affects nonqualified retirement plans and other ... Title: Application of Section 409A to Nonqualified Deferred Compensation Plans. Abstract: Proposed regulations that contain certain clarifications and ... Under Section 409A, deferral elections must be made by the end of the taxable year before the year in which deferrals are made. Companies generally hold open ... Dec 14, 2022 ... Section 409A of the Internal Revenue Code (“Section 409A”) regulates the taxation of nonqualified deferred compensation, including stock ... Jun 22, 2016 ... This document contains proposed regulations that would clarify or modify certain specific provisions of the final regulations under section 409A.