Employee Benefits Update (September 2010)
September 20, 2010
Earlier this year, the IRS instituted a program that allows employers to correct provisions in a plan document or other arrangement (collectively referred to as "plans") that might violate Section 409A of the Internal Revenue Code (“Section 409A”). Importantly, this program (“Notice 2010-6” or the “Document Correction Program”) includes transition relief that generally allows employers to correct certain technical problems without the imposition of Section 409A penalties, which are described below. This transition relief is only available for corrections that are made on or before December 31, 2010.
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