On June 21, 2016, the Internal Revenue Service issued proposed 409A and 457(f) regulations, which clarify and amend the final regulations under Section 409A issued in 2007 and the final regulations under Section 457 issued in 2003.
The 2016 proposed regulations offer new guidance related to: (1) the reach of Section 409A (such as offering clarity on what a "payment" means under the statute), (2) the exemptions under Section 409A (such as relaxed rules under the short-term deferral exemption and clarifications under the severance pay plan exemption), (3) the permitted payment events that comply with Section 409A (such as payments on death, separation from service, or under certain earn-outs or escrows in mergers), (4) the remedies or solutions available, or unavailable, if an arrangement violates Section 409A (such as narrowing the ability to correct unvested noncompliant payments), and (5) substantial risk of forfeiture issues under Section 457(f).
Objectives of the Presentation
Why Should you Attend
- Overview of the proposed regulations for Section 409A and 457(f)
- The impact of the proposed regulations on substantial risk of forfeiture and other triggers for payment of compensation
- The new flexibility the 409A regulations provide regarding the timing of payments following the death of a participant or beneficiary
- The impact of the proposed regulations on covenants not to compete
- The reporting responsibilities required under both 409A and 457(f)
- The new limitations on the opportunity to make corrections of unvested amounts
Benefits counsel must understand the impact of the new guidance on nonqualified deferred compensation plans in order to advise their clients on compliance best practices.
This webinar will provide employee benefits counsel with a detailed review of the new regulations under 409A and 457(f), as proposed June 21, 2016. The Speaker will outline the more significant changes to the existing 409A and 457(f) regulations, lingering questions under the proposed regulations and compliance strategies.
Who will Benefit
- Most significant changes in the law with respect to both Section 409A and Section 457(f)
- The impact of the new regulations on deferral compensation and how such compensation should be structured
- Identifying payment, or triggering, events for payment of compensation
- The impact of the new regulations on substantial risk of forfeiture under Section 457(f)
- How covenants not to compete are affected by the regulations, and how such covenants should be structured
- Questions that remain unanswered and new questions the regulations create
- Compliance strategies for employee benefits counsel
- ERISA counsel
- Tax counsel
- Executive compensation counsel
- In-house counsel
- Employment Law Counsel (for covenants not to compete)