§ 409A requires compliance in both form (documentation) and operations (administration). This webinar will discuss the impact of the IRS Notice 2010-6 on the correction and even the proper drafting of documentation for the many types of compensation and benefit plans covered by § 409A. A complement to Notice 2008-113 governing operational 409A errors, Notice 2010-6 constitutes the first and most significant IRS release of guidance to date on the correction of 409A plan documentation and by virtue of this guidance, also thereby provides direction for the drafting of “best practices” plan documents. In this Knowledge Group LIVE webcast, a panel of distinguished professionals will help you understand the most critical issues and implications of IRS Notice 2010-6 as to existing and future compensation plan covered (and even exempt from), and will include:
- Overview of importance of Notice 2010-6 to the creation & maintenance of proper 409A plan documentation
- Types of plan documentation errors in various types of plans cover by Notice 2010-6
- Steps for correcting 409A various documentation errors under Notice 2010-6
- Discussion of “last chance” retroactive opportunity for correcting “bad” documents, including improperly linked qualified and nonqualified retirement plans, and plans not amended
prior to the § 409A December 31, 2008 form compliance deadline.
- Discussion of “best practices” document drafting process hints suggested by Notice 2010-6
- Live interactive Q&A session
This is a must attend event for companies to be guided on the importance of planned documentation and ramifications of its error. Hurry! Register now and reap the rewards of complying with § 409A.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Group, LLC
Recommended CLE/CPE Hours: 2.0
Important Note: Your State Bar or Accounting Board will make the final determination with respect to continuing education credit. If you are applying for CLE credit in Texas you must register 20 days before the event date or you will not be able to obtain CLE credit.
Advance Preparation: Print and review course materials
Course Code: 103956
Louis R. Richey, JD
Senior Vice President
Regina Olshan
Partner, Executive Compensation and Benefits
Eric R. Keller
Partner
John W. Boyd
Counsel
Louis R. Richey, JD, Senior Vice President, McCamish Systems, LLC
Correction and Drafting of 409A Plan Documentation under IRS Notice 2010-6 (from a plan administrator’s perspective)
- Overdue first clear guidance on bad (and therefore good) plan documentation for 409A retirement plans- issues and directions under Notice 2010-6
- Fitting the 409A paperwork requirements into the plan creation process to create “error free” documents after Notice 2010-6
- The special “bugaboo” of 409A nonqualified retirement plans tied to qualified plans and Notice 2010-6
- Guidance for “best practices” 409A compliant plan documentation creation and correction (and also operational compliance) in the future – action steps after Notice 2010-6
Eric R. Keller, Partner, Paul, Hastings, Janofsky & Walker LLP
- Notice 2010-6 seems to create compliance issues where none existed previously under regulations (e.g., releases)
- Because several compliance positions are new, it is important to be familiar with the correction guidelines when drafting new plans let alone detecting violations under existing plans
- Types of errors addressed and requirements for correction
- Correction guidelines provide limited relief, particularly after transition period; consider whether other correction methods are feasible.
- Transition relief is generous, but subject to potentially problematic limitations and requirements
Regina Olshan, Partner, Executive Compensation and Benefits, Skadden, Arps, Slate, Meagher & Flom LLP
- Do you need to use the Notice? (a. do you have a violation? - use of savings clauses and other techniques to avoid formal correction; b. corrections outside of Notice 2010-6 (ways to correct violations without using the notice))
- Typical plan documentation errors in various types of plans covered by Notice 2010-6 - recognizing footfaults
-- releases
-- toggling violations
- Steps for correcting 409A documentation errors under Notice 2010-6
- Transition relief
John W. Boyd, Counsel, Baker and Hostetler LLP
- The correction program under Notice 2010-6 sets forth precise procedural steps which must be followed. IRS and Treasury officials have indicated that failure to comply with each of the steps will result in a loss of the relief under available under Notice 2010-6.
- By design, many of the correction procedures under Notice 2010-6 impose “costs” on Service Providers and Service Recipients. Those costs may be in the form of additional administrative burden and loss of plan flexibility or they made be direct financial costs imposed on Service Providers. Taxpayers will therefore need to carefully assess the value of the relief available under Notice 2010-6 based upon their particular circumstances.
- With careful analysis it may be possible to minimize correction costs by fitting within a particular correction procedure under Notice 2010-6 and/or by taking advantage of operational relief available under Notice 2008-113.
- The relief available under Notice 2010-6 will be most helpful for technical errors in plan documents which are identified early. The corrective relief will be more burdensome for broad errors in plan design which may be indicative of a lack of an intent to comply with the requirements of Code Section 409A.
- HR Compensation & Benefit Associates
- Executive Plan Sponsor Managers
- Corporate In-House Tax & Benefits Counsel
- CPAs
- Retirement Plan Actuaries
- Plan Administrators
- Employee and Executive Benefit Attorneys
- TPAs
- Executive Compensation & Benefit Consultants
This is a must attend event to everyone to hear the latest updates and developments on Section 409A and its related issues.
- Detailed guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A