An explanation of the 409A Tracking Rule (and a suggestion that pre-wiring a plan under 409A may avoid the five-year limitation on tracking underlying equity payments): From xtreERISA Blog:
"...I'm suggesting, if you have an equity-based plan and it provides when implemented at the outset that distributions in respect of equity units will track third-party post-CiC payments for underlying equity, then the provision doesn't have to limit tracking to third-party payments made within five years. In that case, I believe, you can simply say that the payments will track the third-party payments, whenever made."
ARTICLE HERE
