Requirement that payments begin at age 55 (regardless of separation age)?

[ERISAatty]

1.409A-3(b) provides in part: "A plan may provide for payment upon the earliest or latest of more than one event or time, provide that each event or time is" [a permissible payment event].

My question relates to a plan under which, if separation is on or after age 55, benefits commence withing 90 days of separation.

If separation is before age 55, benefits commence within 75 days of attaining age 55.

Is it a problem that someone might separate, say, 3 years before attaining age 55? In other words, is 'age 55' a specific enough designation that the commencement of benefits can continue to be deferred until attaining that date, even though payment is payable on account of the separation?

In a way, even though the plan doesn't explicit say it, I guess you could argue that this design makes payment upon the earliest of termination or, if later, upon attainment of age 55. Maybe that satisfies the above-quoted provision just fine?

I think I've been reading too much fine print.

Any clarity or opinions are welcomed!

Thanks!

[Guest Eric.]

I don't believe this scenarion creates any type of problem whatsoever, as long as provision is so written properly and timely.

[J Simmons]

I agree with Eric. As for a cite, try Treas Reg §1.409A-3©.