Here We Go Again! Section 409A Deadline Further Extended
The Treasury Department and IRS issued Notice 2007-86 on October 22, 2007 extending the Section 409A general transition relief deadline to December 31, 2008. Pursuant to Notice 2007-78 issued in September of 2007, the document deadline had been extended to December 31, 2008 but portions of the transition relief were due to expire on December 31, 2007. In part, this meant that all deferred compensation plans and arrangements had to have a written compliant time and form of payment provision in place by December 31, 2007. That is no longer true.
Prior to the extended compliance date of December 31, 2008, all parties are still required to operate their deferred compensation plans and arrangements good faith conformity with Section 409A as has been true since January 1, 2005. Thus, employers should continue to identify their deferred compensation arrangements and ensure that those arrangements are being operated in conformity with the Section 409A rules.
We will continue to issue updates as further guidance is issued. For more information or if you have questions, please contact us at (207) 775-2387 or info@bdmp.com.