Section 409A Six-Month Delay Rule for Specified Employees
(Management Memorandum)

Summary

Use this Section 409A Six-Month Delay Rule for Specified Employees (Management Memorandum) to provide background to a company's compensation committee and/or other management personnel on complying with the delayed payment rules for nonqualified deferred compensation payments under Internal Revenue Code Section 409A. This template contains drafting notes, optional clauses, and alternate clauses. For a full listing of key content for in-house counsel and corporate secretaries when performing corporate functions, see In-House Corporate Secretary Resource Kit. For further information on this topic, see Section 409A Six-Month Delay Rule Compliance, Section 409A Specified Employee Identification Policy, Section 409A Specified Employee Identification Checklist, Section 409A Specified Employee Compensation Definition Checklist, and Section 409A Six-Month Delay Rule Flowchart and Separation Benefit Exceptions Chart. For general background on Section 409A, see Section 409A Fundamentals.