TARP Delays Won’t Cause 409A Violation

Notice 2009-92 provides clarification that certain delays necessary to comply with the requirements of the TARP Special Master will not be deemed to cause a nonqualified plan to run afoul of Section 409A.

Document Excerpt

This notice provides that, subject to certain conditions, the compliance by a financial institution (TARP recipient) that has received financial assistance under the Troubled Asset Relief Program (TARP) with an advisory opinion of the Office of the Special Master for TARP Executive Compensation (the Special Master) determining that changing the time or form of payment of compensation to a service provider of the TARP recipient, or conditioning payment upon aTARP-related condition such as the prior repayment of some or all of the financial assistance, or both, is necessary for the payment or arrangement to be consistent with the standards set forth in Treasury’s Interim Final Rule for TARPCompensation and Corporate Governance (74 FR 28394), will not result in a failure to comply with the requirements of § 409A(a) of the Internal Revenue Code (Code).

 

Link http://www.irs.gov/pub/irs-drop/n-09-92.pdf

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