How does Section 409A affect tuition reduction for employees of educational institutions?

Jun 4, 2016 ... Section 409A imposes four general categories of requirements that nonqualified deferred compensation plans must satisfy to avoid penalties and ... Feb 11, 2025 ... Description. A nonqualified deferred compensation plan is a plan that provides a legally binding right in one taxable year to compensation that ... Section 409A applies whenever there is a “deferral of compensation,” which occurs when an employee has a legally binding right during a taxable year to ... Dec 2, 2010 ... The IRS previously provided relief and guidance permitting the correction of certain operational and document failures under Section 409A of ... Mar 9, 2012 ... Establishing fair market value for purposes of Section 409A and stock option grants ... As a general rule, all stock option grants need to have an ... 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 ... Sep 8, 2014 ... A violation of Section 409A results in immediate taxation to the executive of all vested rights under any covered compensation arrangement prior ... 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 ... 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 ... Jul 12, 2023 ... In this context, the punitive tax result is exacerbated by the fact that the employee did not receive any cash. Further, section 409A requires a ...