Attorney Charles Shulman Discusses New 409A Relief

Charles Shulman discusses the new Section 409A relief provided in  Notice 2010-80 – Relief With Respect to Correction Methods and Payment Conditioned on Executing Release.

Document Excerpt

See the following EB/EC Law Update re Notice 2010-80 – Relief With Respect to Correction Methods and Payment Conditioned on Executing Release, which discusses the following:

  • Notice 2010-80, issued on Nov. 30, 2010 provides relief for severance conditioned on terminated employee signing release, in that payment can be set within, e.g., 60 (or 90) days and if such payment period stradles two years the payment must be made in the second year.  There is transition relief for correcting this documentary error through Dec. 31, 2012.  
     
  • There is also relief regarding:
    (i)  certain linked plans and stock rights are included in documentary correction;
    (ii)  information and reporting requirements for operational corrections; and
    (iii)  information and reporting requirements for documentary corrections. 
  • Prompt attention for 409A corrections may be needed, as some of the transitional rules for corrections expire Dec. 31, 2010.  

Link For further details see client memo at http://www.ebeclaw.com/memos/Notice_2010-80_-_Relief_for_Releases_and_for_Correction_Programs.pdf 

 

 

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