Benefits Forward

See EBEC Law Update on the documentary corrections at http://www.ebeclaw.com/memos/EBEC_Law_Update_-_Notice_2010-6_-_Documentary_Correction_Program.pdf IRS Notice 2010-6, 2010-3 I.R.B. 275 (January 5, 2010), allows taxpayers to voluntarily correct many documentary failures under Internal Revenue Code § 409A. Previously, voluntary 409A corrections were available only for operational failures under Notice 2008-113. Notice 2010-6 provides that certain ambiguous plan terms are permitted under § 409A even without correction if there is no pattern of noncompliance. Corrections are set forth for: (i) impermissible definitions of payment events, (ii) impermissible payment periods, payment events or payment schedules, (iii) lack of six-month delay, and (iv) impermissible initial deferrals, etc. The notice also provides certain transition rules and information and reporting requirements for documentary corrections.