Non-Qualified Plan Compliance Services
In my view, the most difficult aspect of sponsoring a non-qualified plan is the continued compliant administration of that plan. Unfortunately, due to the egregious provisions of Code Section 409A, there is absolutely no room for administration errors. Problems do not disappear or simply resolve themselves and they should never be pushed under the rug. With non-qualified plans the IRS and goverment agencies are unrelenting when it comes to persuing costly resolutions.
If it is wrong, you must fix it, and the procedures that caused the failure, in a timely fashion as defined by 409A's correction programs. If the error happens again, it may not be fixable. You must strive to be error free in the administration of your plan. In certain situations you must report the error, and the resolution on a "public" corporate filing for all to see.
While I am not an attorney or an actuary....I was the person that they came to at Towers Watson for non-qualified plan help.