Year-end deadline for nonqualified deferred compensation plans.

• Position: Tax info

To retain tax-deferred status under new section 409A, nonqualified deferred compensation plans must take certain steps by Dec. 31. According to the 240-page proposed regs (www.treas.gov/press/releases/reports/reg15808004.pdf) issued Sept. 29, initial deferral elections and elections to defer compensation for services performed in 2006 must be made by Dec. 31, unless the compensation qualifies as "performance-based compensation." Plan sponsors must also allow service providers to cancel a deferral election, terminate participation in the plan, or make amendments to terminate...