Legal Alert - Transition Relief for Correction of Section 409A Release Agreement Timing Failures Expires on December 31, 2012


by Thomas R. Hoecker, Marvin S. (Bucky) Swift, Jr., Anne M. Meyer and Greg Gautam

Change in control, severance, employment and other nonqualified deferred compensation agreements that are subject to Section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A"), and require an employee to sign a release to receive payment, should be reviewed for compliance with the documentary requirements of Section 409A by December 31, 2012. Failure to identify and amend these agreements by year-end could create tax problems for the employees covered by such agreements.

[Read the full alert.]