Section 409A of the Internal Revenue Code for Deferred Compensation Rules
The Internal Revenue Code Section 409A defines the rules and regulations governing deferred compensation. Deferred compensation is untaxed income that is earned and then saved for taxation and distribution at a later date. Our employment lawyers in Philadelphia analyze employee deferred compensation plans and employment agreements to ensure that their terms and conditions are in compliance with the latest laws. There are serious consequences for the employee if they fail to comply with the regulations set forth by the Internal Revenue Code Section 409A. Earnings set aside in previous years as well as the current year could be subject to taxation along with a 20% penalty tax for non-compliance. Sidney L. Gold & Associates understand the law and keep up to date with changes and amendments that may occur so that they can best protect the investments of their clients.