Executive Compensation and Benefits

In late 2004 the IRS released Notice 2005-1 (the "Notice") which provided initial guidance on then newly enacted IRC Section 409A. Subsequently, in September of 2005 the US Treasury Department released Proposed Regulations to Section 409A of the Internal Revenue Code (the "Proposed Regulations").

Both the Notice and the Proposed Regulations provide flexibility until the end of 2006 with respect to most actions required to transition plans into compliance with Section 409A. However, certain actions with respect to plans must be taken by the end of 2005.

Below is a summary of the actions employers should take with respect to their plans subject to Section 409A prior to December 31, 2005.