Source: http://www.law.cornell.edu/uscode/text/26/409A
Timestamp: 2014-10-23 20:44:12
Document Index: 438687700

Matched Legal Cases: ['§ 409', '§ 409', '§ 409', '§ 885', '§ 403', '§ 116', '§ 101', '§ 116', '§ 116', '§ 403', '§ 885', '§ 403', '§ 885', '§ 885', '§ 403']

26 U.S. Code § 409A - Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans | LII / Legal Information Institute
U.S. Code › Title 26 › Subtitle A › Chapter 1 › Subchapter D › Part I › Subpart A › § 409A 26 U.S. Code § 409A - Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans
Rules relating to constructive receipt (1)
Plan failures (A)
Gross income inclusion (i)
Interest and additional tax payable with respect to previously deferred compensation (i)
In general The requirements of this paragraph are met if the plan provides that compensation deferred under the plan may not be distributed earlier than—
In the case of any specified employee, the requirement of subparagraph (A)(i) is met only if distributions may not be made before the date which is 6 months after the date of separation from service (or, if earlier, the date of death of the employee). For purposes of the preceding sentence, a specified employee is a key employee (as defined in section 416
(i) without regard to paragraph (5) thereof) of a corporation any stock in which is publicly traded on an established securities market or otherwise.
The requirement of subparagraph (A)(vi) is met only if, as determined under regulations of the Secretary, the amounts distributed with respect to an emergency do not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).
Disabled For purposes of subparagraph (A)(ii), a participant shall be considered disabled if the participant—
is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of the participant’s employer.
Acceleration of benefits The requirements of this paragraph are met if the plan does not permit the acceleration of the time or schedule of any payment under the plan, except as provided in regulations by the Secretary.
In general The requirements of this paragraph are met if the requirements of subparagraphs (B) and (C) are met.
Initial deferral decision (i)
Changes in time and form of distribution The requirements of this subparagraph are met if, in the case of a plan which permits under a subsequent election a delay in a payment or a change in the form of payment—
Rules relating to funding (1)
Offshore property in a trust In the case of assets set aside (directly or indirectly) in a trust (or other arrangement determined by the Secretary) for purposes of paying deferred compensation under a nonqualified deferred compensation plan, for purposes of section 83 such assets shall be treated as property transferred in connection with the performance of services whether or not such assets are available to satisfy claims of general creditors—
Employer’s financial health In the case of compensation deferred under a nonqualified deferred compensation plan, there is a transfer of property within the meaning of section 83 with respect to such compensation as of the earlier of—
the date on which the plan first provides that assets will become restricted to the provision of benefits under the plan in connection with a change in the employer’s financial health, or
Treatment of employer’s defined benefit plan during restricted period (A)
Restricted period For purposes of this section, the term “restricted period” means, with respect to any plan described in subparagraph (A)—
any period during which the plan is in at-risk status (as defined in section 430
(i)); [1]
Special rule for payment of taxes on deferred compensation included in income If an employer provides directly or indirectly for the payment of any Federal, State, or local income taxes with respect to any compensation required to be included in gross income by reason of this paragraph—
The term “covered employee” means an individual described in section 162
(m)(3) or an individual subject to the requirements of section 16(a) of the Securities Exchange Act of 1934.
Income inclusion for offshore trusts and employer’s financial health For each taxable year that assets treated as transferred under this subsection remain set aside in a trust or other arrangement subject to paragraph (1), (2), or (3), any increase in value in, or earnings with respect to, such assets shall be treated as an additional transfer of property under this subsection (to the extent not previously included in income).
Interest on tax liability payable with respect to transferred property (A)
In general If amounts are required to be included in gross income by reason of paragraph (1), (2), or (3) for a taxable year, the tax imposed by this chapter for such taxable year shall be increased by the sum of—
Interest For purposes of subparagraph (A), the interest determined under this subparagraph for any taxable year is the amount of interest at the underpayment rate plus 1 percentage point on the underpayments that would have occurred had the amounts so required to be included in gross income by paragraph (1), (2), or (3) been includible in gross income for the taxable year in which first deferred or, if later, the first taxable year in which such amounts are not subject to a substantial risk of forfeiture.
No inference on earlier income inclusion or requirement of later inclusion Nothing in this section shall be construed to prevent the inclusion of amounts in gross income under any other provision of this chapter or any other rule of law earlier than the time provided in this section. Any amount included in gross income under this section shall not be required to be included in gross income under any other provision of this chapter or any other rule of law later than the time provided in this section.
Other definitions and special rules For purposes of this section:
Nonqualified deferred compensation plan The term “nonqualified deferred compensation plan” means any plan that provides for the deferral of compensation, other than—
Qualified employer plan The term “qualified employer plan” means—
any plan, contract, pension, account, or trust described in subparagraph (A) or (B) of section 219
(g)(5) (without regard to subparagraph (A)(iii)),
any eligible deferred compensation plan (within the meaning of section 457
any plan described in section 415
Plan includes arrangements, etc. The term “plan” includes any agreement or arrangement, including an agreement or arrangement that includes one person.
Treatment of earnings References to deferred compensation shall be treated as including references to income (whether actual or notional) attributable to such compensation or such income.
Aggregation rules Except as provided by the Secretary, rules similar to the rules of subsections (b) and (c) ofsection 414 shall apply.
(Added Pub. L. 108–357, title VIII, § 885(a),Oct. 22, 2004, 118 Stat. 1634; amended Pub. L. 109–135, title IV, § 403(hh)(2),Dec. 21, 2005, 119 Stat. 2631; Pub. L. 109–280, title I, § 116(a), (b),Aug. 17, 2006, 120 Stat. 856, 858; Pub. L. 110–458, title I, § 101(e),Dec. 23, 2008, 122 Stat. 5100.)
Section 16(a) of the Securities Exchange Act of 1934, referred to in subsec. (b)(3)(D)(ii), is classified to section 78p
2008—Subsec. (b)(3)(A)(ii). Pub. L. 110–458inserted “to an applicable covered employee” after “under the plan”.
2006—Subsec. (b)(3). Pub. L. 109–280, § 116(a), added par. (3). Former par. (3) redesignated (4).
Subsec. (b)(4), (5). Pub. L. 109–280redesignated pars. (3) and (4) as (4) and (5), respectively, and substituted “paragraph (1), (2), or (3)” for “paragraph (1) or (2)” wherever appearing.
2005—Subsec. (a)(4)(C)(ii). Pub. L. 109–135struck out “first” after “requires that the”.
Pub. L. 109–280, title I, § 116(c),Aug. 17, 2006, 120 Stat. 858, provided that: “The amendments made by this section [amending this section] shall apply to transfers or other reservation of assets after the date of the enactment of this Act [Aug. 17, 2006].”
Pub. L. 109–135, title IV, § 403(hh)(3)(A),Dec. 21, 2005, 119 Stat. 2631, provided that: “Notwithstanding section 885(d)(1) of the American Jobs Creation Act of 2004 [Pub. L. 108–357, set out below], subsection (b) ofsection 409A of the Internal Revenue Code of 1986 shall take effect on January 1, 2005.”
Pub. L. 108–357, title VIII, § 885(d),Oct. 22, 2004, 118 Stat. 1640, provided that:
“(1) In general.—The amendments made by this section [enacting this section and amending sections 3401, 6041, and 6051 of this title] shall apply to amounts deferred after December 31, 2004.
“(A) Earnings.—The amendments made by this section shall apply to earnings on deferred compensation only to the extent that such amendments apply to such compensation.
“(B) Material modifications.—For purposes of this subsection, amounts deferred in taxable years beginning before January 1, 2005, shall be treated as amounts deferred in a taxable year beginning on or after such date if the plan under which the deferral is made is materially modified after October 3, 2004, unless such modification is pursuant to the guidance issued under subsection (f) [set out as a note below].
“(3) Exception for nonelective deferred compensation.—The amendments made by this section shall not apply to any nonelective deferred compensation to which section 457 of the Internal Revenue Code of 1986 does not apply by reason of section 457(e)(12) of such Code, but only if such compensation is provided under a nonqualified deferred compensation plan—
“(B) which was providing nonelective deferred compensation described in such section 457
(e)(12) on such date, and
Pub. L. 109–135, title IV, § 403(hh)(3)(B),Dec. 21, 2005, 119 Stat. 2631, provided that: “Not later than 90 days after the date of the enactment of this Act [Dec. 21, 2005], the Secretary of the Treasury shall issue guidance under which a nonqualified deferred compensation plan which is in violation of the requirements of section 409A(b) of such Code shall be treated as not having violated such requirements if such plan comes into conformance with such requirements during such limited period as the Secretary may specify in such guidance.”
Pub. L. 108–357, title VIII, § 885(e),Oct. 22, 2004, 118 Stat. 1640, provided that: “Not later than 90 days after the date of the enactment of this Act [Oct. 22, 2004], the Secretary of the Treasury shall issue guidance on what constitutes a change in ownership or effective control for purposes of section 409A of the Internal Revenue Code of 1986, as added by this section.”
Pub. L. 108–357, title VIII, § 885(f),Oct. 22, 2004, 118 Stat. 1641, as amended by Pub. L. 109–135, title IV, § 403(hh)(4),Dec. 21, 2005, 119 Stat. 2632, provided that: “Not later than 60 days after the date of the enactment of this Act [Oct. 22, 2004], the Secretary of the Treasury shall issue guidance providing a limited period during which a nonqualified deferred compensation plan adopted before January 1, 2005, may, without violating the requirements of paragraphs (2), (3), and (4) of section 409A(a) of the Internal Revenue Code of 1986 (as added by this section), be amended—
We truncate results at 20000 items. After that, you're on your own. Nonqualified Deferred Compensation : 2013-06-07
Nonqualified Deferred Compensation : 2009-10-30
Nonqualified Deferred Compensation : 2009-08-28
Constructive Receipt : 2009-08-28
Nonqualified Deferred Compensation : 2009-04-03
Additional Income and Taxes Generated from the Backdating or Discounting of Exercised Stock Options : 2007-07-13