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Cooley explains the 409A compliance delay

 

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Law firm Cooley Godward Kronish released a short article tonight that explains the "transition relief" offered by the IRS with respect to 409A compliance. It is a reminder how much of 409A is outside the realm of valuation. In fact, darn near all of it.

I was surprised when a good friend of mine in the VC community snipped, "Just like the government to waste our time worrying about 409A, when all they do is push it back." Is that really your understanding??

In the words of Cooley:

"...even though Notice 2007-86 extends the period in which you can amend your nonqualified deferred compensation plans to comply with Section 409A, you are still required (and have been since January 1, 2005) to operate... in reasonable, good faith compliance with Section 409A."

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