Subsequent Deferrals and Separation

[Guest J Bauer]

As a condition for re-deferring amounts previously deferred and payable upon separation from service, 409A(a)(4)© requires that the plan requires that the payment be pushed back at least 5 years from the date the payment would otherwise have been made.

If a participant wanted to change the timing (before separating from service) so that his account would be paid out on a specified date or pursuant to a fixed schedule, does the above restriction prevent this? At the time of the subsequent election, it doesn't seem possible to know when the separation from service would occur and therefore whether the delayed payment would be at least 5 years thereafter.

Any thoughts?