Last month, and perhaps in response (at least in part) to a letter from 92 of the largest law firms in the country (including our firm), the Internal Revenue Service issued Notice 2007-78 (the “Notice”). The Notice provides a limited extension of the prior December 31, 2007 deadline for bringing deferred compensation plans and arrangements (“DCPs”) into compliance with section 409A of the Internal Revenue Code. The extension does not delay the January 1, 2008 effective date for operating DCPs in accordance with the final regulations (good faith operational compliance applies before 2008). Further, the extension does not delay the need to take a closer look at all DCPs before 2008 for planning opportunities that are not available after 2007 and documentary compliance that is required by December 31, 2007. 


 

Source: Employee Benefits & Executive Compensation Client Memorandum
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