Employee Benefits and Executive Compensation Alert - Venable LLP

The IRS recently issued proposed regulations under Internal Revenue Code Section 409A for deferred compensation arrangements that apply to all employers. The IRS also recently proposed regulations under Internal Revenue Code Section 457 for deferred compensation plans of tax-exempts and governmental entities. In addition to traditional deferred compensation arrangements, certain employment agreement provisions, severance arrangements, equity grants and expense reimbursement arrangements, and other similar arrangements, may be impacted.

Proposed regulations under Section 409A

There are extensive existing final regulations and proposed regulations under 409A, and the recently issued proposed regulations modify both and clarify specific issues.