Ezel / IRS Rulings / 1323023
Chief Counsel Advice 1323023 Released June 7, 2013 Advice

CCA explains when section 409A grandfathering rules may apply to a deferred compensation plan

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This page covers one taxpayer's ruling from 2013, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2013
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel Advice addresses whether the section 409A transition rules apply to a deferred compensation plan for the open years under review. The advice says the transition rules do not apply and that the final section 409A regulations govern those years. It explains that the plan may still be grandfathered if no amounts were deferred after December 31, 2004, and the plan was not materially modified after October 3, 2004.

Ruling snapshot

  • Question: Do section 409A transition or grandfathering rules apply to the deferred compensation plan for the open years under review?
  • Outcome: Advice given
  • Key authorities: IRC § 409A; Treas. Reg. § 1.409A-6

Full text (IRS public release)

ID: CCA-5201120-13
Office: ------------------------
UILC: 409A.00-00
Number: 201323023
Release Date: 6/7/2013
From: -----------------------
Sent: Friday, March 1, 2013 3:48 PM
To: ---------------
Cc:
Subject: Re: follow-up

Since the open years for the plan you are reviewing are ------- and -------, the transition rules
under section 409A are not applicable. The plan would be subject to the Final section 409A
regulations during those years. However, there are grandfathering rules in section 1.409A-6 of
the regulations that may be applicable. If no amounts were deferred under the plan in taxable
years beginning after Dec. 31, 2004, and the plan was not materially modified after Oct. 3, 2004,
the plan is not subject to section 409A.

Please let me know if you have any other questions.

Thanks,

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