<nobr>May 10, 2006</nobr>

ERIC Submits Comments to IRS on 409A Proposed Regulations

Attached is a comment filed today with the Treasury Department proposing a solution to a problem raised by the new 409A requirements. Specifically, under currently proposed regulations, an individual may not -- as was the case prior to the enactment of section 409A -- accelerate the payment of nonqualified deferred compensation in order to avoid being placed in a position that could involve a conflict of interest.

The comment proposes to revise and expand the currently proposed conflict-of-interest exception in the proposed regulations so long as the plan is provided a written statement either from a responsible government official or from legal counsel engaged by the employee regarding the necessity of accelerating payments to comply with conflict-of-interest rules.

The comment was developed at the suggestion of ERIC members and after discussions with Treasury officials, and a draft comment was circulated on April 19.

For questions, please contact:
Janice Gregory, Senior Vice President
(202)789-1400
jgregory@eric.org

Text Files:

ERIC's Comments to IRS RE: 409A

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