Excerpt: Section 409A generally does not apply to foreign employees. However, 409A does lay a few traps for the employers with individuals working outside the U.S. The following is a very brief summary you might want to keep handy: .... When a nonresident alien (NRA) earns deferred compensation for work outside U.S. and subsequently becomes U.S. resident before the compensation is vested, the deferred compensation is generally subject to Section 409A.  MORE >>