Deferred Compensation Plans under Section 409A

Section 409A applies to any arrangement that postpones payments of compensation to subsequent years. The Notice spells out what is and is not deferred compensation, Single-person Plans, "defined benefit" non-qualified plans, Supplemental Executive Retirement Plans (SERPs) and arrangements for non-employees (directors, trustees and independent contractors).

14 minute read November 01, 2014 at 01:26 PM

Lawrence L. Bell

The American Jobs Creation Act (AJCA), signed into law on Oct. 22, 2004, created new restrictions on compensation arrangements. New Section 409A of the Internal Revenue Code (IRC) applied to compensation deferred under a non-qualified deferred compensation plan after Dec. 31, 2004.

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Deferred Compensation Plans under Section 409A

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