Self-Correction of 409A Violations

[Guest jhall]

Am curious if anybody has seen any guidance regarding the potential for a plan sponsor to self-correct something that is clearly a violation of 409A (e.g., allowing bonus deferrals without proper elections) without imposing excise taxes / penalties, etc. I seem to recall some commentators on the regulations suggesting that the IRS consider developing a self-correction program for minor violations of 409A similar to EPCRS but have not heard much about that or seen anybody discuss what, if anything, can be done under current guidance. In this case, violation all happened in 2006 calendar year so I would like to think things could simply be reversed without having to self-assess excise taxes. All thoughts appreciated.

[Guest dancin]

Am curious if anybody has seen any guidance regarding the potential for a plan sponsor to self-correct something that is clearly a violation of 409A (e.g., allowing bonus deferrals without proper elections) without imposing excise taxes / penalties, etc. I seem to recall some commentators on the regulations suggesting that the IRS consider developing a self-correction program for minor violations of 409A similar to EPCRS but have not heard much about that or seen anybody discuss what, if anything, can be done under current guidance. In this case, violation all happened in 2006 calendar year so I would like to think things could simply be reversed without having to self-assess excise taxes. All thoughts appreciated.

See Notice 2007-100, 2007-52 I.R.B. 1243 (12/26/2007)