Section 409A definition: Copy, customize, and use instantly
Introduction
The term "Section 409A" refers to a provision of the U.S. Internal Revenue Code that governs the taxation of non-qualified deferred compensation plans. It imposes strict rules on the timing and form of compensation deferrals to prevent penalties. Compliance with Section 409A is essential to avoid substantial tax penalties for both employers and employees.
Below are various examples of how "Section 409A" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Section 409A" as a tax provision
This definition ties "Section 409A" to the tax rules governing deferred compensation.
"Section 409A" refers to the section of the Internal Revenue Code that regulates the deferral of compensation, establishing rules for the timing of elections and distributions to prevent tax penalties.
Definition of "Section 409A" for deferred compensation compliance
This definition connects "Section 409A" to the requirement for compliance with deferred compensation rules.
"Section 409A" means the specific provision in the Internal Revenue Code that sets forth rules for non-qualified deferred compensation, ensuring that all such plans comply with its regulations.
Definition of "Section 409A" as a penalty avoidance clause
This definition links "Section 409A" to the avoidance of tax penalties.
"Section 409A" refers to a provision of the Internal Revenue Code that establishes rules for non-qualified deferred compensation plans and outlines penalties for non-compliance, including accelerated taxation and additional penalties.
Definition of "Section 409A" as related to executive compensation
This definition applies "Section 409A" to executive compensation agreements.
"Section 409A" means the relevant tax provision governing the timing, eligibility, and distribution of deferred compensation for executives, directors, and other key personnel in order to avoid adverse tax consequences.
Definition of "Section 409A" for stock option plans
This definition connects "Section 409A" to stock option and equity compensation plans.
"Section 409A" refers to the provision of the Internal Revenue Code that governs the taxation of non-qualified deferred compensation plans, including the treatment of stock options and other equity-based compensation.
Definition of "Section 409A" as it pertains to timing of deferrals
This definition links "Section 409A" to the rules surrounding the timing of deferral elections.
"Section 409A" means the section of the Internal Revenue Code that regulates the timing of deferral elections for non-qualified deferred compensation plans, establishing specific periods within which elections must be made to avoid penalties.
Definition of "Section 409A" in the context of deferred income
This definition applies "Section 409A" to deferred income arrangements.
"Section 409A" refers to a provision of the Internal Revenue Code that governs how income is deferred and when it becomes taxable, ensuring that the deferral of income is in compliance with the established rules.
Definition of "Section 409A" as related to distribution events
This definition ties "Section 409A" to the specific events that trigger distribution of deferred compensation.
"Section 409A" refers to the tax provision that sets forth permissible distribution events for non-qualified deferred compensation, such as separation from service, disability, or a change in control of the company.
Definition of "Section 409A" in non-qualified retirement plans
This definition connects "Section 409A" to non-qualified retirement plans.
"Section 409A" means the section of the Internal Revenue Code that regulates the deferral of compensation under non-qualified retirement plans, ensuring that such plans comply with the tax treatment rules specified in this section.
Definition of "Section 409A" as it applies to severance agreements
This definition links "Section 409A" to severance pay and related agreements.
"Section 409A" refers to the provision of the Internal Revenue Code that governs the taxation of deferred compensation under severance agreements, ensuring that any deferred amounts comply with the timing and distribution rules.
Definition of "Section 409A" in the context of financial planning
This definition connects "Section 409A" to tax planning strategies.
"Section 409A" refers to the provision of the Internal Revenue Code that provides tax rules for non-qualified deferred compensation, which must be carefully considered in financial and retirement planning to avoid penalties.
Definition of "Section 409A" in employee benefit plans
This definition ties "Section 409A" to employee benefit plan structures.
"Section 409A" means the section of the Internal Revenue Code that imposes specific requirements and restrictions on deferred compensation plans offered by employers as part of their employee benefit structures.
Definition of "Section 409A" for tax implications of bonuses
This definition links "Section 409A" to the tax treatment of bonus compensation.
"Section 409A" refers to the tax rules governing the deferral of bonus payments, including the timing of elections and distributions, to ensure that the deferral complies with the requirements of the Internal Revenue Code.
Definition of "Section 409A" in change of control agreements
This definition connects "Section 409A" to compensation triggered by a change of control.
"Section 409A" means the provision that governs deferred compensation in the event of a change in control, specifying the allowable distribution methods to avoid tax penalties.
Definition of "Section 409A" for deferred bonus plans
This definition ties "Section 409A" to deferred bonus compensation plans.
"Section 409A" refers to the section of the Internal Revenue Code that governs the deferral of bonuses, ensuring that any deferred amounts are subject to proper election timing and distribution rules to avoid penalties.
Definition of "Section 409A" related to tax withholding
This definition links "Section 409A" to tax withholding requirements.
"Section 409A" refers to the tax rules that govern when and how income deferred under a non-qualified plan is taxed, including the withholding requirements that apply at the time of distribution.
Definition of "Section 409A" in the context of compensation arrangements
This definition connects "Section 409A" to general compensation practices.
"Section 409A" means the tax provision that outlines the requirements for deferred compensation arrangements, ensuring that such arrangements do not result in immediate taxation or penalties.
Definition of "Section 409A" for tax-free deferrals
This definition applies "Section 409A" to tax-free deferrals of compensation.
"Section 409A" refers to the tax provision that ensures certain deferrals of compensation qualify for tax-free treatment, as long as they comply with the deferral and distribution rules.
Definition of "Section 409A" as a compliance tool for employers
This definition ties "Section 409A" to its role in ensuring employer compliance.
"Section 409A" refers to the provision of the Internal Revenue Code that serves as a compliance tool for employers to ensure that their non-qualified deferred compensation plans comply with tax rules, avoiding substantial penalties.
Definition of "Section 409A" as it relates to retirement benefits
This definition connects "Section 409A" to retirement benefit plans.
"Section 409A" means the Internal Revenue Code provision that regulates the deferral of retirement benefits, ensuring that deferrals meet the IRS timing and distribution requirements.
Definition of "Section 409A" for special rules on deferrals
This definition links "Section 409A" to special rules for deferring compensation.
"Section 409A" refers to the section of the Internal Revenue Code that outlines special rules governing the deferral of compensation, including restrictions on changing deferral elections.
Definition of "Section 409A" for compensation timing
This definition applies "Section 409A" to the timing of compensation elections.
"Section 409A" means the provision of the Internal Revenue Code that specifies the deadlines and timing of elections for deferring compensation, along with the acceptable timing of payments to avoid penalties.
Definition of "Section 409A" as it applies to loans from deferred compensation
This definition connects "Section 409A" to loans against deferred compensation.
"Section 409A" refers to the tax rules that prohibit loans against deferred compensation amounts, ensuring that deferred compensation is not treated as current income.
Definition of "Section 409A" for early distribution penalties
This definition links "Section 409A" to penalties for early distribution.
"Section 409A" refers to the penalties outlined in the Internal Revenue Code for early distribution of non-qualified deferred compensation, including taxes and additional penalties.
Definition of "Section 409A" for foreign compensation plans
This definition connects "Section 409A" to international compensation arrangements.
"Section 409A" means the section of the Internal Revenue Code that governs the tax treatment of foreign compensation plans involving deferred compensation that may affect U.S. taxpayers.
Definition of "Section 409A" for lump-sum distributions
This definition links "Section 409A" to lump-sum distribution rules.
"Section 409A" refers to the Internal Revenue Code rules that govern lump-sum distributions of deferred compensation, ensuring that the timing of such distributions complies with tax regulations.
Definition of "Section 409A" in relation to equity awards
This definition ties "Section 409A" to the taxation of equity awards.
"Section 409A" means the provision of the Internal Revenue Code that regulates the treatment of equity awards such as stock options, ensuring compliance with the timing and distribution rules for deferred compensation.
Definition of "Section 409A" for defined benefit plans
This definition applies "Section 409A" to defined benefit pension plans.
"Section 409A" refers to the section of the Internal Revenue Code that regulates the deferral of compensation under defined benefit plans, ensuring that such plans comply with IRS regulations.
Definition of "Section 409A" as an executive benefit guideline
This definition connects "Section 409A" to executive compensation guidelines.
"Section 409A" means the provision that establishes rules for the deferral of executive compensation, ensuring that deferred amounts are properly handled to avoid triggering penalties.
Definition of "Section 409A" for company stock compensation
This definition ties "Section 409A" to company stock-based compensation.
"Section 409A" refers to the Internal Revenue Code provision that governs the taxation of deferred compensation paid in company stock, ensuring compliance with deferral and distribution rules.
Definition of "Section 409A" for severance pay deferrals
This definition links "Section 409A" to severance pay that is deferred.
"Section 409A" refers to the section of the Internal Revenue Code that governs the tax treatment of severance pay when it is deferred, ensuring compliance with proper timing and tax rules.
Definition of "Section 409A" in the context of compensation restructuring
This definition connects "Section 409A" to the restructuring of compensation plans.
"Section 409A" means the provision that imposes rules on the restructuring of deferred compensation plans, ensuring any modifications comply with IRS regulations to avoid penalties.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.