How does Section 409A affect the use of severance pay plans?

Section 409A can apply to nonqualified retirement plans, elective deferrals of compensation, severance and separation programs, post- employment payments ... [409a] “What arts do you say these are?” His answer, no doubt, would be—“Gymnastics and medicine.” So now, in the case before us, what do we say is the art ... Dec 7, 2023 ... Section 409A delineates a comprehensive regime for the taxation and regulation of nonqualified deferred compensation. It encompasses employees, ... Aug 7, 2007 ... What is section 409A? Section 409A was enacted in October 2004 and ... If deferred compensation covered by section 409A meets the requirements of ... Section 409A imposes complex new requirements on nonqualified deferred compensation plans that must be satisfied to avoid immediate income inclusion. 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 ... Severance payments made under a window program (i.e., a program in which employees are offered enhanced benefits if they voluntarily terminate employment during ... 2 Section 409A imposes a significant tax penalty on deferred compensation arrangements that do not meet its numerous technical requirements.3 Thus, the effect ... Feb 2, 2024 ... What 409A valuations are; Why they're an IRS requirement; Common criticisms on Section 409A from start-ups; The benefits of 409A compliance ... Section 409A was enacted by Congress as part of the American Jobs. Creation Act of 2004. This law makes dramatic revisions that could cause immediate taxation ...