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
409A Dismay by Rich Meisner. I created 409A Dismay as a public arena for expression of dismay over complex executive tax rules. I am an attorney with over 19 years of experience handling executive compensation and employee benefit matters for large and small companies, executives, employees and ERISA plan participants. Feel free to contact me if you have information that you wish to publish on this blog, or if you have any questions or comments regarding 409A.