IRC Section 409A and Nonqualified Deferred Compensation Rules Hit Hollywood

Recently I heard an interview with the musician and actor Jon Bon Jovi. In the interview, Mr. Bon Jovi was belaboring the high cost of health insurance and the fact that as an independent artist he does not have group health insurance benefits. He said he even went so far as to quit smoking to lower...

Tax Aspects of Nonqualified Deferrred Compensation: Avoiding Constructive Receipt

Employers and executives must be sure to avoid the doctrine of constructive receipt when drafting deferred compensation arrangements. Specific provisions required by IRC Section 409A must be included in deferred compensation plan, and adhered to by the parties. Statutory requirements include election...

IRC § 409A and Changes in Control: Must Option Cash-Outs Be “All-or-Nothing”?

IRC Section 409A was enacted post-Enron to stem the abuse of corporate executives who accelerated payments under their deferred compensation plans before the company went bankrupt. IRC Section 409A sets strict guidelines for private companies issuing stock options and other forms of non-qualified deferred...

IRC § 409A and Changes in Control: Must Option Cash-Outs Be “All-or-Nothing”?

IRC Section 409A was enacted post-Enron to stem the abuse of corporate executives who accelerated payments under their deferred compensation plans before the company went bankrupt. IRC Section 409A sets strict guidelines for private companies issuing stock options and other forms of non-qualified deferred...