IRS Offers Additional Transition Relief under Code Section 409A
October 01, 2007
Recently, the IRS issued Notice 2007-86, generally extending the transition relief under Section 409A of the Internal Revenue Code (the “Code”) applicable to nonqualified deferred compensation plans that was scheduled to expire on December 31, 2007. This transition relief partially revokes and supersedes the limited transition relief provided by Notice 2007-78, issued earlier this year. In addition, the IRS has issued Notice 2007-89, which provides guidance to employers on their reporting and withholding obligations for calendar year 2007 with respect to deferrals of compensation and amounts includible in income under Code Section 409A.