Question on Catch-Up Prior to Plan NRA, Gov't 457(b)Plans

[Guest barrystarr]

Is Catch-up within last three years of retirement based only on the NRA?

Or is there any other trigering event available?

For example: A participant wants to retire at age 67, but plans' NRA is 70 1/2.

How can a 457b participant age 64 use ('Last 3 Years' type) catch-up contributions for his last 3 years?

(Assume that he was not able to use catch-up based on undercontributing.)

[Michael Devault]

It's my understanding that the catch-up can be used only during the three tax years ending before he or she attains normal retirement age. The catch-up cannot be used for the year in which he/she attains normal retirement age. Therefore, if he/she attains age 70-1/2 sometime in 2009, for example, they can use the catch-up in 2006, 2007 and 2008, but not in 2009.

I'm not aware of any other instances where the catch-up can be used.

Hope this is of some help to you.