Section 409A Plan Termination Exceptions Checklist

Summary

This checklist outlines the plan termination exception to the prohibition on accelerated payments under I.R.C. § 409A and its implementing regulations (Section 409A). Whenever a nonqualified deferred compensation arrangement subject to Section 409A (NQDC plan) is terminated early, the plan termination exception permits (and, in fact, requires) an accelerated distribution of all amounts deferred under the plan if the employer sponsoring the plan (and certain related entities, if applicable) satisfies certain conditions.