BenefitsLink logo
EmployeeBenefitsJobs logo
Free Daily News and Jobs

“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
Featured Jobs

Retirement Plan Administrator (Fort Worth TX)
Retirement Plan Administrator (Colorado Springs CO / Telecommute)

Senior Defined Contribution Account Manager (Houston TX / Dallas TX / Austin TX / Scottsdale AZ / Telecommute)
Senior Retirement Plan Administrator (Philadelphia PA / Telecommute)

Plan Administrator (Lake Mary FL / Richmond VA / Dallas TX / Los Angeles CA)
Search all jobs
 
Get the BenefitsLink app LinkedIn
Twitter
Facebook
Jump to content
BenefitsLink Message Boards
Sign in to follow this  
khn

Lowering Normal Retirement Age

Recommended Posts

Our NQ plan allows participants to take a lump sum distribution or elect a 10-year payout at a Normal Retirement age of 59.5 Our industry competitors seem to have a Normal Retirement Age of 55  in their NQ plans.  We're considering lowering the age but are  concerned about complying with 409A. Does it make any sense to consider lowering the age or is there too much risk of 409A violations?

 

 

Share this post


Link to post
Share on other sites

This is complicated, but based on your brief description it sounds like lowering the NRA for amounts already accrued under the plan could, depending on other facts not included in your description of plan provision, result in an impermissible acceleration of time of payment.

  • Like 1

Share this post


Link to post
Share on other sites

I'm guessing that the participant gets one form of distribution if they separate before hitting NRA and a different distribution form after NRA.  If that's the case, then changing NRA for amounts accrued would be changing the benefit formula with would impose a 5 year delay (kind of the complete opposite of what lowering the NRA would achieve).  Prospective would work just fine. 

  • Like 1

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
Sign in to follow this  

×
  • Create New...