COURSE DESCRIPTION: Imagine this: You need to go into your CEO’s office and say, “Boss, I just found out that you’re subject to a 20% excise tax on your nonqualified deferred compensation.”
As of December 31st, 2008, this nightmare scenario was a reality for many because of the new Internal Revenue Code Section 409A, the biggest change in the executive compensation world in years. Section 409A requires compliance with strict design and operational guidelines. Failure to comply could result in significant federal income tax consequences to your key executives.
If you haven’t taken corrective action yet, now’s the time to learn what your Section 409A and tax reporting obligations are going forward -- and the best way to structure your new incentive compensation to energize your workforce. You also need to find out how you should design your employment and severance obligations to be exempt from 409A.
In this 60-minute session you’ll learn how to identify the plans and agreements subject to Section 409A, spot problematic provisions and ensure your plans and agreements are in compliance. You’ll also learn what to do to address Section 409A errors and how to coordinate compliance in the years to come.
In this audio conference, you’ll learn:
- How to identify which plans and agreements need to comply with Section 409A
- What to do if you fall into non-compliance and how to correct Section 409A operational violations
- The impact of Section 409A on Employment and Severance Agreements and how to structure these agreements to avoid having to comply with the new regulations
- Exemptions from application of 409A for Good Reason terminations
- The implications Section 409A has on bonus plans
- Timing of payments under nonqualified deferred compensation plans (and additional limitations on certain employees of public companies)
- What Section 409A means to equity incentive plans
- Fair Market Value determinations for private companies (a huge practical issue, with ongoing cost ramifications)
- Reporting (W-2) requirements - commencing with 2009 nonqualified deferred compensation
- Action items to keep you in compliance
ABOUT THE SPEAKER: John A. Reade, Jr., a partner in the Duane Morris LLP Employee Benefits and Executive Compensation practice group, is recognized as an authority in the area of employee benefits. His background includes: Counseling and representing clients in the area of employee benefits, including executive compensation and severance agreements, qualified and nonqualified plans, health and welfare plans, ERISA litigation, employee benefits issues in corporate transactions, fiduciary related issues involving prohibited transactions and qualified plan advice and representation of clients before the DOL, IRS and PBGC. John speaks frequently across the country on developments in employee benefits and executive compensation. He is a magna cum laude graduate of Syracuse University College of Law, where he was a member of the Syracuse University Law Review, and a magna cum laude graduate of Syracuse University.
