TheRealSteve72

The 409A substitution rules just say that any benefit in exchange for forfeiting an existing benefit is deemed to be a payment of the existing benefit. Since you are retaining the accrued benefit and the payment terms, there shouldn't be an issue. I would be careful that there is no appearance of reducing the existing accrued benefit under the "old" plan in exchange for a richer benefit in the future, however, as that could be seen as a de facto deferral.