For purposes of Section 409A of the Internal Revenue Code (Code) (Section 409A), a specified employee is a key employee of a publicly traded company. Specified employees are generally employees that satisfy any of the following conditions:

If deferred compensation is paid to a specified employee in connection with the employee's separation from service, the payment must be delayed for six months following the separation from service (or, if the specified employee dies during the six-month period, until his death). The six-month delay requirement only applies to deferred compensation and therefore does not apply to amounts that fall under an exclusion, for example, amounts that are exempt as "short-term deferrals."

For more information regarding the types of arrangements that are subject to Section 409A, see Practice Note, Section 409A: Deferred Compensation Tax Rules: Overview: Types of Arrangements Subject to Section 409A. For more information regarding exclusions from Section 409A, see Practice Note, Section 409A: Deferred Compensation Tax Rules: Overview: Exemption from Section 409A.

Section 409A contains complex rules for determining specified employees. For more information on determining specified employees, see Practice Note, Specified Employees Under Section 409A and Determining Specified Employees Under Section 409A Checklist.