What are the design considerations for phantom stock plans to comply with Section 409A?

Free Access to Practical Guidance Content. Fill out the form to access a sample of Practical Guidance. Section 409A governs the federal tax treatment of a wide variety of NQDC arrangements, which are generally defined as any legally binding compensation ... May 31, 2013 ... Mike Moulton's practice concentrates on entertainment and appurtenant corporate matters, including the representation of entertainment industry and creative ... Dec 14, 2022 ... Section 409A of the Internal Revenue Code (“Section 409A”) regulates the taxation of nonqualified deferred compensation, including stock ... May 25, 2007 ... This alert focuses on the rules in the final regulations related to the timing of deferral elections and the time and form of payment of deferred compensation. Mar 14, 2024 ... ... Section 409A and must be appropriately structured to avoid adverse tax consequences. Failure to comply with 409A's strict rules can result ... Jun 6, 2017 ... The attached article briefly describes the applicable law and available guidance, illustrates the issue in an example, and provides two plausible analyses. Compliance with Internal Revenue Code Section 409A can be complicated, the penalties are extremely punitive, and the IRS has no policy to negotiate settlements. 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 ... Mar 19, 2023 ... Section 409A of the Internal Revenue Code of 1986, as amended (409A), was enacted into law in 2004 to impose statutory requirements on ...