IRS Code 409A Compliance Clause Samples

IRS Code 409A Compliance. The foregoing provisions and all compensation and benefits provided for under this Agreement are intended to be exempt from or comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and any regulations and United States Department of the Treasury (“Treasury”) guidance promulgated thereunder and any state law equivalent (together, “Section 409A”) so that none of the separation payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to be exempt or so comply. Specifically, any payments under this Agreement are intended to be exempt from Section 409A pursuant to the “short-term deferral exemption” under Section 409A and in no event will any separation payment due to you under this Agreement be made to you later than March 15 of the year following the year in which you executed this agreement. Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.