<nobr>Sep 10, 2007</nobr>

IRS Extends Deadline for Section 409A Compliance

The Internal Revenue Service today released Notice 2007-78, which provides taxpayers until December 31, 2008, to bring documents into compliance with the final nonqualified deferred compensation regulations under section 409A.

The Treasury Department and IRS in April 2007 issued final regulations concerning the requirements for deferral elections and payment timing under section 409A, which required affected plans and arrangements to comply with these rules by December 31, 2007. IRS Notice 2007-78 extends the document compliance deadline for one year and provides additional limited transition relief, but does not extend the January 1, 2008, effective date of the final regulations. Notice 2007-78 also announces that Treasury and IRS anticipate issuing guidance containing a limited voluntary compliance program that will permit corrections of certain unintentional operational violations of section 409A.

A copy of Notice 2007-78 is attached.

If you have any questions, please contact Rosemary Becchi or Mike Chittenden of the ERIC staff.


Ted Godbout
Manager, Communications
The ERISA Industry Committee
1400 L Street, NW, Suite 350
Washington, DC 20005
Phone: (202) 789-1400
Fax: (202) 789-1120
E-mail: tgodbout@eric.org
www.eric.org



Text Files:

IRS Notice 2007-78

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