Client Alert
IRS Issues Guidance Regarding Document Correction Program Under Code Section 409A
Earlier this month, the Internal Revenue Service released Notice 2010-6, which establishes a program by which taxpayers may correct certain failures of nonqualified deferred compensation plans (“NDCPs”) to comply with the document requirements of Code Section 409A and potentially avoid taxes and penalties triggered by noncompliant plan document provisions. The program is designed to encourage taxpayers to review their NDCPs and voluntarily correct any failures that they find. The program also provides incentives, in some circumstances, for taxpayers to correct their plans by December 31, 2010. The IRS had previously allowed correction of operational failures as described in Notice 2008-113. Notice 2010-6 also clarifies certain aspects of Notice 2008-113.
Click here to read our client alert describing Notice 2010-6.
Contact Information
If you have questions regarding the effect of Notice 2010-6 on your NDCP, please contact the Womble Carlyle attorney with whom you usually work, or one of our Employee Benefits Lawyers.
