EBECatty

457(b) Special 3-Year Catch Up

4 posts in this topic

Is anyone aware whether, for purposes of the special catch-up contributions, a non-governmental 457(b) plan can define "normal retirement age" at less than age 65 where the sponsor has only a 401(k) plan (with a normal retirement age below 65), and not a DB plan or money purchase plan?

Share this post


Link to post
Share on other sites

No can do. In the situation you describe, can't be earlier than age 65. See 1.457-4(c)(3)(v).

Share this post


Link to post
Share on other sites

That was my reaction after the reading the NRA definition you cite, but it struck me as odd that the regs wouldn't allow for an NRA tied to a defined contribution plan. Here, the 401(k) plan's NRA is 62, but the 457(b) plan NRA now has to be 65. Just seems inconsistent. I couldn't find any guidance issued on the point either. 

Maybe the IRS views the DB plan NRA as a more "real" retirement date?

Share this post


Link to post
Share on other sites

I express no view about the Treasury department's interpretation of IRC 457(b)(3).

But if the rule allowed reference not only to a defined-benefit or money-purchase pension plan but also to a profit-sharing plan, imagine how the rule would apply if the referred-to plan's normal retirement age is 18.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now