November 25, 2008
Section 409A Quick Reference Guide
– Brink Dickerson, Troutman & Sanders
For your assistance as you are preparing to meet the year-end deadline for finalizing the documentation required to avoid excise taxes under IRC Section 409A, my partner Jeff Banish and I have prepared a one-page quick reference guide on 409A. It comes with the caveats that you would expect for a one page summary, but still provides a quick overview of what is – and is not – exempt, as well as the core requirements to qualify for the exemptions.
My strong advice: There were enough changes between everyone’s read of the initial law and what the final regulations provide, that if you have not looked at your compensation arrangements subsequent to the final rules, you need to. This includes not just employment agreements and severance plans, but all bonus plans, equity compensation arrangements, SERPs and any other plan or program that you have that could provide a post-termination benefit to an employee, independent contractor or director. If you have any comments on the guide, contact me at brink.dickerson@troutmansanders.com.