### Question
How does the law define covered employee?


### Answer
Under *26 U.S.C. § 409A*, **covered employee** is defined as:

> an individual described in section 162(m)(3) or an individual subject to the requirements of section 16(a) of the Securities Exchange Act of 1934

#### Citation:
  - *26 U.S.C. § 409A*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

