Summary
Fifth Third Bancorp (FITB) filed an 8-K on November 10, 2005, to report an amendment to the Old Kent Directors' Deferred Compensation Plan, effective November 4, 2005. The primary driver for this amendment was to ensure compliance with the newly enacted Internal Revenue Code Section 409A, which governs nonqualified deferred compensation plans. The amendment offers participating directors a one-time election: they can choose to receive a full taxable payout of their deferred compensation in 2005, or opt to defer their benefits further under the Fifth Third Bancorp Unfunded Deferred Compensation Plan for Non-Employee Directors, as amended. This provides flexibility to plan participants while adhering to new tax regulations.
Key Highlights
- 1Amendment to Old Kent Directors' Deferred Compensation Plan filed on November 4, 2005.
- 2The amendment's main purpose is to comply with new IRS regulations under Section 409A.
- 3Participants have a one-time election regarding their deferred compensation.
- 4Election options include a full taxable payout in 2005 or continued deferral.
- 5Deferred benefits will be administered under the amended Unfunded Deferred Compensation Plan for Non-Employee Directors.
- 6Exhibit 10.1 contains the full text of the plan amendment.
Frequently Asked Questions
The primary reason for the amendment is to comply with the requirements of the newly enacted Internal Revenue Code Section 409A, which sets new rules for nonqualified deferred compensation plans.
Directors have a one-time election to either receive a complete taxable payout of their deferred compensation in 2005 or to have their benefits deferred and administered under the Fifth Third Bancorp Unfunded Deferred Compensation Plan for Non-Employee Directors.
The filing specifically mentions the 'Old Kent Directors’ Deferred Compensation Plan' and the 'Unfunded Deferred Compensation Plan for Non-Employee Directors,' indicating that this amendment pertains to non-employee directors and not current employees.
The details of the amended plan are provided in Exhibit 10.1 to this Form 8-K filing, which is the '2005-1 Amendment to Old Kent Directors’ Deferred Compensation Plan'.