IRC 1.411(b)-2

[Guest Janet]

these proposed regulations indicate that a DB plan may not, directly or indirectly, b/c of attainment of age, disregard compensation after attainment of such age.

Thoughts?? It is still in Corbel's DB checklist.

[Lorraine Dorsa]

I'm looking at Corbel's DB checklist and I don't see an age exclusion.

Are you interpreting the "highest X years in the last ten, excluding the five years preceding NRD" as an age exclusion? I don't see this as such because NRD, depending on how it is defined, could be a single age or a range of ages (e.g. later of 65 or 5th anniversary of participation).

Since a DB is designed to pay benefits at NRD, if a reference to NRD is deemed to be an indirect reference to age, almost every provision in the plan could be deemed to be indirectly contingent upon age.

All the salary averaging definitions on the checklist are commonly used and to my knowledge have not been challenged as being indirect references to age and therefore impermissible under this regulation.