Full Version: Failure to Make Grandfathered Distributions
What are the consequences of failing to make a distribution of pre-409A deferred compensation? It appears that the distribution should have been made in 2007. Would this failure be considered to be a subsequent deferral and thus a material modification which would then subject the benefit to 409A?
Yes, I think so. The grandfathering only applies to the NQDC plan if it is not amended. I think that the failure to make the 2007-scheduled payment would be an amendment taking the plan out of grandfathered status.
QUOTE (Randy Watson @ Dec 22 2008, 04:42 PM) 
What are the consequences of failing to make a distribution of pre-409A deferred compensation? It appears that the distribution should have been made in 2007. Would this failure be considered to be a subsequent deferral and thus a material modification which would then subject the benefit to 409A?
Would being subject to 409A be the only consequence or would there be a 409A violation as well?
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