Treasury Department and IRS issue proposed regulations to address certain specific provisions of the existing Section 409A regulations.

On June 21, 2016, the Department of the Treasury and the Internal Revenue Service issued proposed regulations under Section 409A, which governs nonqualified deferred compensation plans. The proposed regulations address certain specific provisions of the existing final regulations and proposed income inclusion regulations, and explicitly avoid a general revision of, or broad changes to, the existing regulations. While the proposed regulations may be helpful to certain employers, most employers will not need to take any particular action regarding the proposed changes. Comments and requests for a public hearing must be received by September 20, 2016, although taxpayers can rely on the proposed regulations immediately.