The long awaited regulations concerning Internal Revenue Code 409A have been issued. See the regulations at TD 9321. 409A restricts deferral elections, distribution elections and distribution events under nonqualified deferred compensation plans. If a plan is subject to Section 409A and does not meet the requirements, participants are taxed on their vested benefits, incur an additional 20% tax, and may incur interest charges. The new regulations further define which plans are exempt from 409A and which are not. Plans must comply by December 31, 2007. For more discussion, see 409A Regulations Are Here by Calfee, Halter and Griswold; Highlights of Recently Released Section 409A Regulations by Squires Sanders, April 2007, Treasury, IRS Issue Final Regulations on Nonqualified Deferred Compensation, US Treasury Dept News Release, Apr. 10, 2007,