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Final Regulations Announced Today: Guidance Regarding the Application of Section 409A to Split-Dollar Life Insurance Arrangements
April 10, 2007 - Just announced today, Treasury and the IRS have issued long-awaited final regulations under new Code Section 409A. This is a significant development for all employers, imposing a December 2007 deadline on 409A compliance. This notice provides guidance regarding the application of section 409A of the Internal Revenue Code (Code) to split-dollar life insurance arrangements. This notice also provides that certain modifications of split-dollar life insurance arrangements necessary to comply with, or avoid application of, section 409A will not be treated as a material modification for purposes of § 1.61-22(j) of the Income Tax Regulations.