Impending Deadline - Dec. 31, 2008: Mandatory Compliance With Section 409A Requirements And Cafeteria Plan Requirements

This is a reminder of two very important deadlines that will take place on December 31, 2008 dealing with (1) the new Internal Revenue Code Section 409A ("Section 409A") requirements as to deferred compensation arrangements, and (2) the new cafeteria plan requirements. Failure to satisfy either of these separate deadlines could result in severe penalties to the participants and the employer.

Section 409A Compliance

It is critical that every employer thoroughly review its deferred compensation arrangements as soon as possible in order to ensure documentary compliance with Section 409A. This comprehensive review is necessary in order to adequately determine whether the written documents that relate to each of the employer's deferred compensation arrangements are drafted to comply with, or satisfy the exceptions with respect to, Section 409A. Any necessary amendments or restatements to deferred compensation arrangements to comply must be adopted no later than December