New 409A Corrections Program Released

In Notice 2007-100, the IRS has provided details on transition relief for deferred compensation taxation rules under Section 409A. The guidance is aimed at specified unintentional operational failures as well as failures for up to the limit on elective deferrals under Section 402(g) that are not corrected in the same taxable year (401(g) provides limits on non-taxable deferrals into qualified employee benefit plans). The relief is contingent upon the employer taking "commercially reasonable" steps to prevent recurrence of the problem. In addition, the notice asked for comments on potential expansion of the program to amounts too large for correction under current guidance.