409A Now Effective
Starting January 1, 2009, IRC Section 409A is now effective. Although options
granted or unvested after December 31, 2005 are subject to the 409A transition
rules, options granted after January 1, 2009 are now subject to 409A. This means
that privately-held companies cannot grant stock options without addressing 409A
and the Valuation rules outlined thereunder.
The final regulations under 409A can be seen at
http://www.treasury.gov/press/releases/reports/td9321.pdf
For questions or comments, please feel free to contact Jeff Faust at (510)
797-8661 x249 or jfaust@groco.com.
For more information, go to:
409A Valuation Issues Q&A
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