What all is counted for purposes of the 6-Month Delay Rule

[401 Chaos]

Are general post-separation expense reimbursement amounts that are structured to be compliant with 409A but not necessarily exempt from 409A included in items that cannot be paid to specified employees within the first 6 months of separation?

For additional information, we have a specified employee who, in addition to severance or separation pay, is receiving reimbursement for certain moving expenses and continued health benefits, is there a prohibition on paying those reimbursements during the first 6 months? I know the regulations provide for some exemptions when reimbursements are made as part of a separation pay plan (including apparently voluntary separation plans) provided certain rules are followed (see 1.409A-1(b)(9)(v)). In particular, those rules require that the reimbursements be provided within a limited period of time--e.g., reimbursement for moving expenses incurred within 2 years following the year of separation.

In our situation, the moving reimbursement provisions are not expressly limited to expenses incurred within 2 years following year of separation. Instead, they generally envision a one-time moving expense reimbursement being provided for any move at any time following termination for the life of the former employee. As such, I do not think they are exempted under the separation pay plan exemption discussed above. I do believe they comply with the general reimbursement rules / provisions under 409A so I think they are generally compliant if not exempt with the exception concerning application of the 6-month delay requirement.