Excerpt: Section 409A requires companies that receive personal services from a U.S. tax-paying employee to: Document, in advance of the services, any arrangement used to defer receipt of any of the compensation earned by the worker and follow specific rules when making any elections to further defer that compensation. Document, in advance, when such deferred compensation can be paid and follow strict rules that limit the circumstances under which the worker can be paid such deferred compensation. Limit the types of funding arrangements that can be used to make payment.  MORE >>