Posts tagged Tax and Tax Exempt Counseling.
Blogs
Clock 3 minute read
The 409A Horror Show: Don’t Let Year-End Turn Into a Tax Nightmare
Categories: Employee Benefits, Employment Compliance, ERISA, Financial Services
,
Linkedin Twitter Facebook Email

As year-end approaches, it is an opportune time for companies to run an internal audit of their nonqualified deferred compensation plans to flag any potential violations of IRC Section 409A (“Section 409A”). Generally, the sooner a potential violation of Section 409A is identified, the more options a company has to correct the potential violation.

The guidance provided by the IRS regarding correcting 409A failures provides additional flexibility if errors are corrected within the year in which they occur, which means that after December 31, 2025, it could be more difficult and more costly to fix a 409A failure that occurred in 2025.

Back to Workforce Bulletin Blog

Search This Blog

Recent Updates

Related Services

Topics

Archives

Jump to Page

Subscribe

Sign up to receive an email notification when new Workforce Bulletin posts are published:

Privacy Preference Center

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work. These cookies do not store any personally identifiable information.

Performance Cookies

These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not know when you have visited our site, and will not be able to monitor its performance.