Buzz Archive:
A Correction Program for 409A Plan Documents

by Brenda Berg and Jane Francis of Holland & Hart LLP, 2/9/2010

The IRS has issued Notice 2010-6 that offers employers an opportunity to correct documents that are not compliant with Internal Revenue Code Section 409A. Section 409A imposes strict rules on nonqualified deferred compensation plans and other deferred compensation arrangements. Deferred compensation plans were required to be in documentary compliance with Section 409A by December 31, 2008. The IRS previously provided an opportunity to correct certain 409A operational failures under Notice 2008-113; however, until the issuance of Notice 2010-6, there was no method for correcting document failures.

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