December 31, 2008, is the deadline by which nonqualified deferred compensation arrangements must be brought into documentary compliance with the requirements of Section 409A of the Internal Revenue Code, the final regulations and other applicable guidance. The availability of important transition relief regarding compliance with Section 409A will also expire on Dec. 31, 2008. It is not anticipated that the Internal Revenue Service (IRS) will extend this deadline. Note that the IRS has stated that a general amendment or savings clause that reflects the intent to comply with Section 409A or that purports to nullify any provisions that violate Section 409A will not, by itself, be effective in bringing an arrangement into compliance.

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Source: Employee Benefits & Executive Compensation Alert
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