TaxGuided
United States IRC sections

Statute section

IRC section 409A

Inclusion in gross income of deferred compensation under nonqualified deferred compensation plans

Country

United States

Section

409A

Updated

2026-05-20

Operative text

Section 409A imposes strict timing and election rules on nonqualified deferred compensation plans. Violations result in immediate income inclusion of all deferred amounts plus a 20 percent additional tax and interest at the underpayment rate plus 1 percent.

Cross-references

26 U.S.C. 45126 U.S.C. 457A

Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.