The Essential Guide to Section 409A for Equity Compensation

 The final regulations for IRC Section 409A go into effect beginning in 2009—are you prepared to Administer your option, restricted stock and ESPP plans under the new requirements? The Essential Guide to Section 409A for Equity Compensation will cover everything you need to know, including key design, regulatory, and administrative considerations for equity compensation plans under Section 409A. Designed for individuals with little or no prior experience with deferred compensation (and anyone that needs a refresher), this two-part online program explains the effect of Section 409A on all types of equity vehicles—options, restricted stock, SARs and ESPPs.

Section 409A and Your Stock Plans – What You Need to Know Now!

Section 409A can have a major impact on the taxation of equity compensation, as well as the design and administration of stock plans. Even if you have been involved in the industry for years, this program can help your understanding of the tax code and the final regulations as they apply to all types of equity vehicles.

Why this course is critical:

  • Section 409A can have dramatic tax consequences for your plan participants, but proper design and administration can help participants avoid unexpected tax events and onerous tax penalties.
  • The final regulations for IRC Section 409A go into effect beginning in 2009 – will you be ready?
  • Even equity vehicles exempt from Section 409A need to be properly administered in order to avoid inadvertently violating the tax code.

How we present the course:

  • Webcast sessions illustrate Section 409A concepts and best practices as they fit into the regulatory landscape.
  • Seasoned professionals answer your questions in the dedicated online Q&A forum.

What we cover:

Two webcasts scheduled in a single week will cover the essentials you need to know about Section 409A, including:

  • An overview of the tax code and regulations as they apply to equity compensation, plus an explanation of non-qualified deferred compensation fundamentals.
  • Specific application of the code to the various vehicles: options, restricted stock, restricted stock units, SARs and ESPPs
  • Critical planning considerations for equity compensation vehicles covered by Section 409A and steps you need to take to ensure compliance.
  • Important considerations to prevent equity awards from inadvertently becoming subject to Section 409A.
  • Administrative tips and tricks.

Certificate of Completion presented to registrants who complete all sessions and request the certificate. Archives of webcasts will be available online after the live presentations.

Class Schedule

In our first session, we look at IRC Section 409A in its entirety, including the recently published regulations. We'll cover the tax implications in general, with special emphasis on the impact on stock compensation. In addition, we will begin our look at the different types of equity vehicles, starting with Restricted Stock and Restricted Stock Units. The treatment of each equity type will be discussed separately in order to thoroughly cover the impact of Section 409A at grant and throughout the life of the award, The session will have a special emphasis on RSUs, including a discussion of implementing and administering deferral elections.

2.00 hours of continuing education for CEPs

Our second presentation will focus on the impact of the new tax code and regulations on the remaining equity types, ISO, NQSO, SARs, and ESPPs. We will conclude with a section on how to identify current 409A problems and fixes; how to audit your equity plans to determine if you need to amend/update any documentation prior to the effective date; and administrative tips to aid you in designing your policies and procedures to enable you to effectively administer your equity plans under Section 409A.

2.00 hours of continuing education for CEPs