Table of Contents

• REG-148326-05
  • AGENCY:
  • ACTION:
  • SUMMARY:
  • DATES:
  • ADDRESSES:
  • FOR FURTHER INFORMATION CONTACT:
  • SUPPLEMENTARY INFORMATION:
    • Background
    • Explanation of Provisions
    • I. Scope of Proposed Regulations
    • II. Effect of a Failure to Comply with Section 409A(a) on Amounts Deferred in Subsequent Years
    • III. Calculation of the Amount Deferred under a Plan for the Taxable Year in which the Plan Fails to Meet the Requirements of Section 409A(a) and all Preceding Taxable Years
    • A. In general
    • B. Total amount deferred
    • 1. In General
    • 2. Treatment of Payments
    • 3. Treatment of Deemed Losses
    • 4. Treatment of Rights to Deemed Earnings on Amounts Deferred
    • 5. Total Amount Deferred for a Taxable Year Relates to the Entire Taxable Year, Regardless of Date or Period of Failure
    • 6. Treatment of Short-Term Deferrals
    • C. Calculation of total amount deferred — general principles
    • 1. General Rule
    • 2. Rules Regarding Alternative Times and Forms of Payment
    • 3. Treatment of Rights to Formula Amounts
    • D. Calculation of total amounts deferred — specific types of plans
    • 1. Account Balance Plans
    • 2. Nonaccount Balance Plans
    • 3. Stock Rights
    • 4. Separation Pay Arrangements
    • 5. Reimbursement Arrangements
    • 6. Split-Dollar Life Insurance Arrangements
    • 7. Foreign Arrangements
    • 8. Other Plans
    • E. Calculation of amounts includible in income
    • 1. Determination of the Portion of the Total Amount Deferred for a Taxable Year that is Subject to a Substantial Risk of Forfeiture
    • 2. Determination of the Portion of the Total Amount Deferred for a Taxable Year that has been Previously Included in Income
    • F. Treatment of failures continuing during more than one taxable year
    • IV. Application of Additional 20 Percent Tax
    • V. Application of Premium Interest Tax
    • A. In general
    • B. Amounts to which the premium interest tax applies
    • C. Identification of initial years of deferral for includible amounts
    • 1. Identification of Amounts Deferred in a Particular Taxable Year — General Principles
    • 2. Identification of Initial Years of Deferral — Treatment of Amounts Previously Included in Income, Payments, and Investment Losses
    • D. Calculation of the hypothetical underpayment
    • E. Potential safe harbor calculation methods
    • VI. Treatment of Payments, Forfeitures, or Permanent Losses of Deferred Amounts in Taxable Years after the Amount is Included in Income under Section 409A(a)
    • A. Payments of deferred compensation in taxable years after the inclusion of such amounts in income under section 409A(a)
    • B. Permanent forfeiture or loss of a deferred amount previously included in income under section 409A(a)
    • 1. Effect on Service Provider
    • 2. Effect on Service Recipient
    • VII. Service Provider Income Inclusion and Additional Taxes and Service Recipient Reporting and Withholding Obligations
    • A. Service provider income inclusion
    • B. Annual deferral reporting
    • C. Income inclusion reporting and income tax withholding
    • Proposed Effective Date
    • Special Analyses
    • Comments and Public Hearing
  • Proposed Amendments to the Regulations
    • Part 1—INCOME TAXES
  • Drafting Information
• Announcement 2008-122
  • AGENCY:
  • ACTION:
  • SUMMARY:
  • DATES:
  • ADDRESSES:
  • FOR FURTHER INFORMATION CONTACT:
  • SUPPLEMENTARY INFORMATION:
• Announcement 2008-123