A (nationally marketed) commercial software has an option to use Social Security RA (SSRA) or Normal RA as the testing age (whether or not the plan has uniform NRA).

I looked in 1.401(a)(4)-12 (definitions) and did not see SSRA being an option for testing age.

Is there a statute, regulation or IRS opinion that permits using SSRA as the tesing age?

See IRC 401(a)(5)(F). You should check out some of the discussions regarding the use of SSRA as testing age. I wouldn't use it just because the software allows it.

David

The TRA'86 conference committee report contained a statement that Congress believed that private retirement plans should be able to use SSRA just like Social Security, which I believe sparked some attention, but I don't think that statement was ever backed up by legislation or regulation.

The software developer is relying on this too.


Where? I searched this site but nothing came up addressing this issue

I have submitted plans with SSRA as the testing age and no one has raised an objection. But that may be just because the reviewrs may not be looking at it closlely and thus doesn't provide me with the general assurance that it is OK to use SSRA as the testing age.

How about this one?
ImputingPermittedDisparity

Well, for what it's worth, here are what the IRS audit guidelines say, Explanation 5C:

"j. Except in the case of a DC general test demo for a DC plan, the employer's demo must identify the testing age of employees used in calculating rates.

Testing age generally means the NRA under the plan when the plan provides a uniform NRA for all employees in the plan (for this purpose, social security retirement age is considered a uniform retirement age); however, testing age means age 65 if the plan does not provide a uniform NRA. If the plan has different uniform NRAs for different employees or groups of employees, the employee's testing age is the latest NRA under any uniform NRA under the plan, regardless of whether it actually applies to the employee."

This seems to me to only give lip service to the use of SSRA as testing age.

It seems to say that if the plan does not use SSRA as NRA then you cannot use SSRA as testing age, but if the plan uses SSRA as NRA then you need to use the latest of 67, 66 or 65 that any employees has as NRA. But because this is so convoluted I'm not surprised that a test using SSRA has not been rejected.

SSRA as testing age seems ok if both the plan uses it and all employees have the same SSRA. How common is that?