Posted: 12/11/2007

On December 3, 2007, the IRS issued Notice 2007-100 (the "Notice"), which sets forth a limited correction program for unintentional operational failures under Code section 409A and solicits comments on a more expansive correction program. If the requirements of the Notice are met:

• Certain operational failures that are corrected during the year the failure occurs will not result in section 409A violations.

• Certain operational failures that occur in years before 2010 and involve only limited amounts (e.g., $15,500 or less in 2007/2008) may be corrected within two years. Only the amounts involved in such a failure will be subject to adverse treatment under section 409A.

Attached please find further discussion and a summary of the program. For more information, please contact John McGuiness.