List Of Section 409A Retirement Service Providers References. Section 409a of the united states internal revenue code regulates nonqualified deferred compensation paid by a service recipient to a service provider by generally imposing a 20% excise tax when certain design or operational rules contained in the section are violated. Service recipients are generally employers, but those who hire independent contractors are also service recipients.
Service providers include executives, general employees, some independent contrac… Service recipients are generally employers, but those who hire independent contractors are also service recipients. Section 409a prescribes a comprehensive set of rules for the taxation of nonqualified deferred compensation and imposes strict penalties for violations of section 409a.
