mariemonroe Posted August 3, 2015 Posted August 3, 2015 I have a client who wants to increase normal retirement age from 55 to 60 in its 401(k) Plan. Does the anti-cutback rule apply? Can this change only apply to new hires?
david rigby Posted August 3, 2015 Posted August 3, 2015 Anti-cutback issues apply to benefits already accrued (earned), rather than to employees/participants. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
mbozek Posted August 5, 2015 Posted August 5, 2015 What would be the purpose of such a change? Is plan going to prohibit distributions before 60? mjb
Doghouse Posted August 5, 2015 Posted August 5, 2015 Care must be taken with respect to vesting. I believe a change in NRA can be considered a change in vesting schedule.
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