Normal Retirement Age in 457(b) NP Plan

[Lori Foresz]

We took over a 457b for not for profit. The normal retirement age is specified as age 59.5 the same NRA as in the 403b plan.

The plan also allows the special 3-year catchup. I am reading the regulations and have found that NRA cannot be earlier than age 65 or the NRA under the DBPP or MPPP. Is there something that allows the NRA to mirror the 403b plan and still be OK for the 3-year catchup?

Any help is greatly appreciated.

lori

[Peter Gulia]

Is the 403(b) plan a grandfathered defined-benefit or money-purchase pension plan?

[kgr12]

I'm reviving this post since I had a related question that is more generalized in nature.

Specifically, if the employer doesn't maintain a defined benefit plan or a money purchase pension plan, does the plan's normal retirement age HAVE to be age 65 or later (up to 70 1/2)?

In other words, is the only way to have an NRA lower than 65 is for the employer to also have a defined benefit or money purchase pension plan (assuming the unreduced benefit standard is also met of course)?

That sure seems to be the inference of 1.457-4©(3)(v).

[John Feldt ERPA CPC QPA]

Yes. If you have a governmental 457(b), there is an exception for police/fire, 1.457-4©(3)(v)(B)

[kgr12]

Thanks for that reply. I have seen more than a couple of nonprofit 457(b) plans use a NRA earlier than 65 even when they don't have a DB or MPPP, and wondering if I was missing something.