Section 409A Compliance Deadline: December 31, 2008

In 2007, the IRS issued final regulations interpreting the requirements imposed on nonqualified deferred compensation arrangements by Section 409A of the Internal Revenue Code. The final regulations were effective January 1, 2008, but the IRS has previously extended the deadline for arrangements to be in written compliance with Section 409A. All nonqualified deferred compensation arrangements must be in written compliance with the final regulations by December 31, 2008.

Substantial time may be necessary to bring arrangements into compliance with Section 409A. The amount of time necessary to bring arrangements into compliance depends on several factors, including the number and complexity of arrangements, the design choices involved, and obtaining the required consents or approvals (e.g., board of directors, compensation committee, employees, etc.). Employers are encouraged to contact legal counsel as