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Wayne Spivak President & CFO

Clarification on Section 409A

Asked on Feb. 25, 2016

Does Section 409A - Deferred Compensation only refer to retirement benefits?

I looked at what the IRS had and I find it not only linked to retirement benefits, but tied to non-qualified plans (also retirement).

What about if you had a deferred comp clause in your contract (be it salary or bonus) that is paid by March 31 of the following year; does this section apply?

Answers

John Herndon's headshot
John Herndon Senior Director of Revenue Recognition. • June 13, 2016

IRC 490(a) covers many areas, however in terms of compensation the section refers to Deferred Compensation Plans only. These can be profit pool deferred comp or straight forward individual qualified plans.

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Filed Under: Human Capital
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