Section 409A Handbook, Second Edition

Congress enactment of Tax Code Section 409A as part of the 2004 American Jobs Creation Act has been a rude awakening for those accustomed to handling compensation arrangements under the previous regulatory regime. The detailed, complex rules for compliance with Section 409A which includes nearly 1,000 pages of regulations and guidance have forced practitioners to devote far more time than before to plan design and compliance. Such additional attention is a necessity given the significant tax penalties for noncompliance. To make matters worse, there are still many unresolved issues under Section 409A, and it is not anticipated that additional guidance will be forthcoming.Finally, a resource is available that provides not only the comprehensive guidance necessary to interpret the complex rules of Section 409A, but also analysis and pertinent advice on the many unresolved issues involved the Section 409A Handbook. Fundamentally useful to both the executive compensation practitioner and the more general benefits practitioner, the Handbook is the how to guide for designing and modifying compensation arrangements to comply with Section 409A. With contributions from numerous recognized experts in the field, this resource provides essential, practical information regarding Structuring and administering a diverse array of executive and other "service provider" compensation arrangements including employment and severance agreements, change-in-control arrangements, supplemental and excess pension plans, and traditional deferred compensation plans in a manner that is designed to avoid the ever-tightening net of tax penalties under Section 409A. How to avoid common violations, spot violations that have occurred and correct them whenever possible, and assess penalties when the violation cannot be corrected.Areas where Section 409A compliance has proven particularly challenging, the situations that present the highest risk of IRS challenge, and common traps that may result in unintentional violations.Insight into the interpretation and application of unresolved areas of Section 409A law. Practical tips/advice, numerous examples, tables, forms, and flowcharts to guide your analysis and optimize Section 409A compliance. The Section 409A Handbook will help any practitioner successfully navigate Section 409A, with its broad scope, extensive and complicated regulations, and myriad corollary rules and unresolved issues. This resource has become even more critical as a result of the IRS significantly increased audits and enforcement of executive compensation rules such as Section 409A as part of revenue raising activities. As the first comprehensive examination of Section 409A, this resource offers guidance that will be invaluable to any practitioner in the field of employee benefits or executive compensation.