Randall & Hurley, Inc.
Loren D. Stark Company
EPIC Retirement Plan Services
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|409A Program -- Are Deferrals Allowed After a Payment Event?|
BenefitsLink Message Boards
June 24, 2021
"Elective deferral plan states that upon attainment of age 65 deferred amounts will be distributed in 120 monthly installments. A new director joined in May 2019, elected to defer his fees, and turned 65 six months later (Nov. 2019). He's been allowed to continue deferring his fees. No distributions have been made. I'm trying to identify exactly what the failure(s) are here. Should he have been allowed to defer after age 65? If not, the entire amount deferred after age 65 must be paid out this year, and the entire amount deferred in prior years is likely subject to penalties."
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