Section 409A was added to the Internal Revenue Code of 1986, as amended (the “Code”), by the American Jobs Creation Act of 2004.  Section 409A made significant changes to the tax rules governing nonqualified deferred compensation plans and is generally applicable to amounts deferred after Dec. 31, 2004.  Shortly after Section 409A was enacted, the Internal Revenue Service issued Notice 2005-1, which set forth initial guidance with respect to Section 409A.  In October 2005, the IRS issued long-awaited proposed regulations under Section 409A.  On April 10, 2007, the IRS finalized the proposed regulations.  The final regulations do not substantially change the proposed regulations, but do provide some modifications and clarifications to the proposed regulations.

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