Correction of 409A Document Failures

Notice 2009-6 permits taxpayers to correct certain failures of a nonqualified deferred compensation plan to comply with the plan document requirements of § 409A, or in certain circumstances to limit the amount includible in income and additional taxes under § 409A as a result of a plan document failure.  Notice 2010-6 also clarifies certain aspects of Notice 2008-113, which addresses failures of nonqualified deferred compensation plans to comply with § 409A in operation.  

Document Excerpt

This notice provides methods for taxpayers to voluntarily correct many types of failures to comply with the document requirements applicable under § 409A of the Internal Revenue Code (Code) to nonqualified deferred compensation plans and thereby avoid or reduce the current income inclusion and additional taxes under § 409A.





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