more-arw search

Q&A Forum

Clarification on Section 409A

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
Title: Senior Consultant
Company: NOWCFO
(Senior Consultant, NOWCFO) |

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.

1777 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.