We want to do an early retirement window where if participants agree to retire, they get an extra 2 years of service and 2 years of age. For most of our "over-65" folks, the extra service and years won't help them, as they are more or less maxed out in the plan.
Is this OK? Can we offer an early retirement window that benefits people under 65 more than people over 65?
Secondly, do early withdrawal penalties apply the same for people who retire during an early retirement window. If I terminate employment because of the early retirement window at 54, am I still subject to the 10% penalty, even if the plan is treating me as older for purposes of the window?
