Service Provider Agrees to Reduction in Payment

[ERISA25]

It seems to me that a service provider and service recipient may agree to a reduction in an annual payment under a plan that is subject to 409A, assuming that the SP agrees to permanently waive any right to the amount that has been waived. Is there anything in the regs that would not allow this type of waiver? Should I be concerned that this may constitute some type of operational failure?

[QDROphile]

You have to be careful about any consideration, or the appearance of consideration, as an acceleration or further deferral. If you don't have consderation, are you still caught in the constructive receipt rule? A colloquial explanation of the constructive receipt rule is that one cannot turn one's back on income. Section 409A does not supplant the constructive receipt rules. Would the service recipient have income from forgiveness of debt?