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Special 457(b) pre-retirement catch-up


DTH

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Hi,

A 457(b) governmental plan allows participants to elect their normal retirement age for the special pre-retirement catch-up. Can a participant retire this year (age 60) and begin taking their unreduced DB benefit and turn in their 457(b) special catch-up papwerwork declaring their 457(b) normal retirement age as 63 so they can make the catch-up contribution this tax year?

The 457(b) regulations refer to declaring a normal retirement age and not a normal retirement date. At first blush it appears that the taxpayer could do this but I have heard that IRS auditors saying that taxpayers can't do this. The taxpayer would need to turn in their 457(b) special catch-up form declaring their normal retirement age before telling the DB plan or employer that they are going to retire in the same tax year.

Has anyone had any experience with this? Also, if the IRS says the taxpayer can't do this does anyone have any IRS published guidance showing they can't.

Thanks.

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